CONTACT US We welcome your feedback and suggestions for any improvements to this Sustainability Report and our sustainability programmes. For any comments and 2016/17 enquiries, please contact us via email at [email protected].

Hopewell Holdings Limited Sustainability 64th Floor, Hopewell Centre Report 183 Queen’s Road East Hong Kong

Tel : (852) 2528 4975 Fax : (852) 2861 2068 www.hopewellholdings.com

2016/17 SUSTAINABILITY REPORT Contents

About this Report ������������������������������������������������������������������������������������������������������ 02 Appendix: Index Tables ������������������������������������������������������������������������������������������������������������������������������������ 39 About This Report 02 GRI G4 Index 39 Scope of the Report 02 HKEx ESG Reporting Guide Index 48

How We Report 02 Appendix: Supplementary Information ����������������������������������������������������������������������� 54

Managing Director’s Message������������������������������������������� 03 Supply Chain Description (G4-12, HKEx B5.1, B5.2) 54

About Our Business ��������������������������������������������������������������������������� 04 Charters/Initiatives and Memberships (G4-15, G4-16) 55 About Hopewell Holdings 04 Process to Defining Material Issues (G4-18) 55 Our Value Chain 07 List of Material Aspects (G4-19) 56

Our CSR Approach ����������������������������������������������������������������������������� 08 Aspect Boundaries within Organisation (G4-20) 57 CSR at Hopewell in the Past 5 Years 08 Aspect Boundaries Outside of Organisation 58 Core Sustainability Values 09 (Hong Kong and China) (G4-21) Stakeholder Engagement (G4-26, 27) 60 Governance Structure 09 Emissions (HKEx A1) (GRI DMA) 60 Stakeholder Engagement 10 Production and Management of Hazardous and 61 Caring for Our People������������������������������������������������������������������� 11 Non-hazardous Waste (HKEx A1.3, A1.6) Building the Capacity of Our Team 12 Use of Resources (HKEx A2) (GRI DMA) 62 Health & Safety 13 The Environment and Natural Resources (HKEx A3) 62 Work-life Balance 14 Employment (HKEx B1) (GRI DMA) 62 Talent Acquisition 17 Health and Safety (HKEx B2) (GRI DMA) 63 Protecting Our Environment ����������������������������������������������� 19 Development and Training (HKEx B3) (GRI DMA) 63 Emissions 20 Labour Standards (HKEx B4) 63 Waste Management 20 Product Responsibility (HKEx B6) (GRI DMA) 64 Noise and Water Pollution 21 Customer Data Protection and Private Policies 64 Environmental Protection Measures 21 (HKEx B6.5) (GRI DMA) Giving Back to the Community ����������������������������������������� 25 Anti-corruption (HKEx B7) (GRI DMA, G4-56) 65 Environmental Protection 26 Whistleblowing Policy (HKEx B7.2) 65 Community Engagement 27 Community Engagement (HKEx B8) 65 Youth Development 29 HH Social Club Activities 67

Sports, Arts and Culture 29 Verification Statement ��������������������������������������������������������������������������������������������������������������������������������������� 68

Meeting Customer Needs ������������������������������������������������������� 31 Customer Satisfaction 31 Road User Safety 31

Appendix: Data Tables ������������������������������������������������������������������ 33 Economic Performance Table 33 Environmental Performance Table 34 Social Performance Table 37 About This Report

ABOUT THIS REPORT This report is prepared in accordance with the core option of the Global Reporting Initiative (GRI) as stipulated in the This report details Hopewell Holding Limited’s (“HHL”) G4 guidelines, as well as with the Environmental, Social approach and commitment to transparency and and Governance (ESG) Reporting Guide issued by Hong accountability to its stakeholders. A summary of this Kong Exchanges and Clearing Limited (“HKEx”). It has report can be found in the 2016/2017 Annual Report. been verified externally by the Hong Kong Quality SCOPE OF THE REPORT Assurance Agency (“HKQAA”). Information and data in this report covers our 2016/2017 Full details of the business and economic performance of financial year, from 1 July 2016 to 30 June 2017. It the Group, including corporate governance, regulatory presents the Group-wide sustainability approach and issues and directors’ remuneration are available in our performance of HHL and its subsidiaries, as well as joint 2016/2017 Annual Report. venture (JV) operations in Hong Kong and Mainland China across four business divisions:

• Property investment and development • Hospitality • Highway • Energy

HOW WE REPORT This sustainability report covers topics and indicators that reflect the economic, environmental and social impacts from our operations. We have identified, and are responding to, the issues that matter most to the Group and our stakeholders.

This year there is a change of style in the way we report. To keep the information concise, supplementary information on our policies and management approach can be found in the appendices, along with disclosure of key environmental and social metrics.

02 HOPEWELL HOLDINGS LIMITED Managing Director’s Message

2017 marks the seventh year we present the sustainability The Group’s major pipeline projects in Wan Chai, namely achievements and progress made in each business sector Hopewell Centre II, Hill Side Terrace Cluster and the 153– of the Group in a standalone annual sustainability report. 167 QRE project are expected to bring significant changes At Hopewell, we believe a thriving community facilitates to the Wan Chai South neighbourhood. These projects our continuing business success, as such we strive to will include road works which will enhance pedestrian operate in a sustainable manner with considerations for connectivity and improve the area’s traffic flow, and the environmental protection and the social well-being of our provision of a green park for public recreation and stakeholders in the communities where we operate. All enjoyment. In Kowloon East, Kowloonbay International our core businesses — property, hospitality, highway and Trade & Exhibition Centre (“KITEC”) is well-positioned to energy — begin with sustainable design and construction contribute to and benefit from improved connectivity and Hong Kong Government’s plans to revitalise and develop and continue during their operations to enhance their Kowloon East into a quality business district in the long environmental efficiency. term.

We are mindful of the scale and potential impact of our projects in the upcoming years particularly in Wan Chai, and will continue to actively engage with the community and our stakeholders for suggestions and comments. We will also keep abreast of developments in sustainability across all our operations and investigate best practices where appropriate.

I would like to thank our employees for their outstanding efforts and our partners and stakeholders for their feedback and support. Our Sustainability Report will further elaborate on our work, reflecting our stakeholders’ expectations and what is important to us as a responsible corporation.

Our commitment to corporate sustainability guides our business decisions every day. Over the years we have strengthened our efforts to build a solid foundation by integrating ESG into our key business practices. Our ultimate goal as we move forward is to sustain our business growth whilst achieving economic, environmental and social development on a long-term basis.

Thomas Jefferson WU Managing Director, Hopewell Holdings Limited

SUSTAINABILITY REPORT 2016/17 03 About Our Business

ABOUT HOPEWELL HOLDINGS Hopewell Holdings is a listed company on the Main Board of The Stock Exchange of Hong Kong Limited since 1972. The Group’s property segment which primarily operates in Hong Kong include the property investment and development and hospitality divisions. Our infrastructure segment is concentrated in the Pearl River Delta region in Mainland China where our highway and energy divisions operate.

GROUP STRUCTURE

Hopewell Holdings Limited

Property Segment Infrastructure Segment

Property Investment and Hospitality Division Highway Division Energy Division Development Division

04 HOPEWELL HOLDINGS LIMITED About Our Business

IN 2016/2017:

Headquarter based in

Overall revenue in business HK$6,590 as a LISTED COMPANY MILLION 45YEARS HONG KONG

HK$2.7 donated to NGOs 4,873 million in Hong Kong total employees including JVs (including cash and in-kind donation)

CURRENT Proportion of employees in HONG KONG and CHINA TOTAL GFA (including JVs) of investment properties in Hong Kong (including hotel) 1,118 in Hong Kong MILLION 1.3 square feet 3.53.5 ADDITIONAL GFA 3,755 MILLION square feet under development in China of investment properties in Hong Kong (including hotel)

SUSTAINABILITY REPORT 2016/17 05 About Our Business

GUANGDONG Heyuan PRONVINCE Power Plant

PEARL RIVER Panda Hotel DELTA Panda Place The Metroplex

Hopewell KITEC/ New Town E-Max

GS Superhighway

Hill Side Broadwood Twelve Terrace Cluster • QRE Plaza 153-167 • GARDENEast Queens Road • The Avenue East • Lee Tung Avenue Western Hopewell Delta Route • Hopewell Centre HONG Centre II • Wu Chung House KONG Retail Outlets

MACAU

OUR BUSINESS AT A GLANCE 2016/17 Hospitality Property Investment and Development • Panda Hotel • Commercial: Hopewell Centre, KITEC • Xi Shan Chinese Restaurant • Retail: E-Max, The East, Lee Tung Avenue, Panda Place, QRE Plaza, Wu Chung House retail outlets • MENU Restaurant

• Residential: The Avenue, Broadwood Twelve, • 1563’ at the East Live House & Restaurant Hopewell New Town, GARDENEast Highway • Developments in progress: Hopewell Centre II, 153– • Guangzhou-Shenzhen Superhighway (“GS 167 Queens Road East, Hill Side Terrace Cluster, Superhighway”) (122.8 km) Hopewell New Town • Western Delta Route (97.9 km)

Power Generation • Heyuan Power Plant I (2x600 MW coal-fired power plant) and Solar Photovoltaic (PV) Plant (2MWp)

• Under planning: Heyuan Power Plant II (2x1000 MW coal-fired power plant, subject to approval by the People’s Republic of China (“PRC”) authorities)

06 HOPEWELL HOLDINGS LIMITED About Our Business

OUR VALUE CHAIN Our property and hospitality operations engage a wide range of suppliers and third-party contractors who provide cleaning services, security, amenities supplies, food, beverage and printing services. We have around 580 contractors and suppliers in our current database. Whilst cost is one consideration in selecting contractors and suppliers, we give special attention to their sustainability performance as well. We believe that careful selection of quality contractors can greatly influence the success of our business. In order to maintain our standards, we seek suppliers who have the same high standards in service, product quality and responsibility, environmental practice, occupational health and safety and labour practices.

As for our other business divisions, operations are undertaken through JV arrangement. Both GS Superhighway and Western Delta Route operate as a JV with Guangdong Provincial Highway Construction Company Limited. Heyuan Power Plant operates as a JV with Shenzhen Energy Group.

SUSTAINABILITY REPORT 2016/17 07 Our CSR Approach

At HHL, a sustainable, thriving community is vital to our With this commitment in mind, we established our four business success. We believe long-term value for our core pillars: environmental protection, community business can be created when we integrate environmental engagement, youth development, and sports, arts and and social considerations into our operations and business culture. decisions and create a win-win situation for all stakeholders. As a responsible corporate citizen, and one CSR AT HOPEWELL IN THE PAST 5 YEARS that has deep roots in our local communities, we Our first sustainability report was published in 2011. Since understand the need to build strong relationships with our then, the Group has made significant progress towards communities, and minimise our environmental footprint. sustainability in all business divisions.

2012

• Revised and issued the Group’s Code of Conduct to all staff members with 2013 ethical and behavioural framework to guide them in their daily work • Established the CSR Sub-committee under the Sustainability Steering Committee to better monitor the planning, implementation and evaluation • Issued the HHL/Hopewell Highway Infrastructure Limited (“HHI”) Inside of CSR activities Information Policy to enhance Group-wide corporate governance • Issued the Group-wide Whistle-blowing Policy to provide a platform for • Issued the Risk Management Policy for the Group to provide a framework employees and our subsidiaries to report malpractices observed within the for the risk management responsibilities of employees Group directly to top management • Purchased two 45-seater electric busses with the support of Hong Kong • Introduced an Ocean Friendly Menu at our restaurants (Hospitality) Government’s Pilot Green Transport Fund for shuttle bus service between • Organised the 3rd QRE Festival in Wan Chai to promote environmental KITEC and Kowloon Bay MTR station (Property) protection and advocate the culture of Wan Chai (Property) • Began recycling cooking oil into consumable biodiesels (Hospitality) • Introduced the first petrol-electric hybrid vehicle in the company fleet of • Installed LED lights along the entire main alignment of the GS GS Superhighway JV (Highway) Superhighway (Highway) • Participated in Food Angel’s food rescue and assistance programme where excess food is prepared into meal boxes for families in need (Hospitality) • Increased power plant thermal efficiency by 0.03% (Power Plant) 2014 • Hopewell Centre and KITEC participated in Wastewi$e Label Programme organised by Environmental Campaign Committee (”ECC”) and Environmental Protection Department (”EPD”) to reduce waste (Property) • Installed electric taxi charging stations at Hopewell Centre, KITEC, and • KITEC applied for “Carbon ‘Less’ Certificate” organised by ECC (Property) Panda Place (Property) • Installed NOx reduction system in Units 1 and 2 at our Heyuan Power • Began issuing reminder cards for guests to minimise energy and water plant (Power Plant) consumption (Hospitality) • Established a Green Park Committee for Hopewell Centre II park design • Participated in the food waste collection programme by Greeners Action (Property) — Food waste is collected and converted離職及退休 into animal feed (Hospitality) • 業務需要 Placed Staff Suggestion Box at pantries for employees • Participated in the Table for Two programme — Donated HK$2 per order of a particular dish to supply healthy meals for students in China and Africa (Hospitality) • Participated in a glass recycling programme — Collected over 4,990 kg of used bottles for converting into sand for paving blocks (Hospitality) • Built 5 km of additional noise barriers along the GS Superhighway and the Western Delta Route (Highway) • Achieved NOSA three-star rating (Power Plant) 2015 • Increased power plant thermal efficiency by 0.02% (Power Plant) • Began showcasing youth group talents at The Metroplex by premiering films made by youth groups • Started providing plastic bottle recycling bins at The Metroplex (Property) • Set up a new Photography Group under HH Social Club to encourage staff • Completed new upgrades to reduce dust emissions (Power Plant) to pursue their interests outside of work發展及留任 • 人才招募 Launched a shopping bag recycling programme at Hopewell Centre • Installed six Tesla supercharging stations at Hopewell Centre (Property) (Property) • Broadview Villa purchased an on-site food waste composter (Property) • Replaced plastic take-away bags with non-woven bags for festive promotional items and banquets at Xi Shan (Hospitality) • Installed 1.6 km of additional noise barriers along the Western Delta Route 2016 (Highway) • Installed roof-top solar panels at Heyuan Power Plant (Power Plant) • Set up HH Social Club Running Group and Basketball Group to encourage • Signed the Charter on External Lighting launched by Environment Bureau staff to participate in physical activities regularly (Property) • Opened 1563’ at The East Live House and Restaurant in Wan Chai which provides a performance platform for local musicians to showcase their talent (Hospitality) • Installed electric vehicle charging stations along the GS Superhighway (Highway) • Upgraded Unit 2 at the power plant with “superlow” emission system (Power Plant) • Replaced deteriorated and defective insulation at KITEC to reduce energy loss (Property) • Replaced lights with LED bulbs at Panda Place (Property) • Installed Asia’s First City Tree outside Hopewell Centre as a pilot test to identify a potential solution to address air pollution (Property) • Installed new Tesla superchargers at both KITEC and Panda Place (Property)

08 HOPEWELL HOLDINGS LIMITED Our CSR Approach

CORE SUSTAINABILITY VALUES As part of our mission to operate sustainably, we continue our commitment to our four core sustainability values:

We regard the promotion of sustainable We believe a thriving community facilitates community growth to be as important as our continuing business success achieving long-term business growth

We consider ongoing communication with We will work together with our stakeholders our stakeholders as vitally important to to achieve a win-win scenario upholding the well-being of the community

GOVERNANCE STRUCTURE The Group is governed by the Board of Directors (“the Our Sustainability Steering Committee and CSR Sub- Board”), which is made up of seven executive directors committee were created under the Board to oversee the including the Chairman, two non-executive directors and Group’s sustainability initiatives. Our Group-level six independent non-executive directors. The Chairman’s Sustainability Steering Committee is made up of responsibilities are separate from those of the Managing representatives from senior management and chaired by Director so that there is a clear division of duties. The the Managing Director, they are responsible for steering Board is responsible for setting the strategic direction and the Group’s direction and actions towards corporate policies of the Group, inclusive of reporting, sustainability- sustainability. Under the instruction of the Sustainability related initiatives and supervision of the management Steering Committee, our CSR Sub-committee is tasked structure. In terms of risk management, the Board is with implementing and monitoring the assigned responsible for identifying and assessing ESG-related risks sustainability initiatives. and ensuring that appropriate and effective ESG risk management and internal control systems are in place. The structure provides a platform for our different The Board’s risk management approach has been deemed departments and business divisions to come together and effective during the reporting year with no reported discuss any new potential sustainability initiative, progress incidents of ESG-related malpractices. All staff members of existing programmes and the benefits or impacts of our support our risk management process by taking the sustainability programmes. Meetings are held periodically responsibility to evaluate, understand and report risk to report progress. issues within their areas of responsibilities to their supervisors. Reporting to Executive Directors and mitigation measures are put in place when appropriate and necessary.

SUSTAINABILITY REPORT 2016/17 09 Our CSR Approach

STAKEHOLDER ENGAGEMENT ensure that the issues we manage and report on remain aligned with our stakeholders’ needs and expectations. Our success directly correlates with our understanding of and ability to address the needs of our stakeholders. To Aside from our ongoing stakeholder engagement identify our most important material issues, we conducted activities, this year we engaged senior management from a comprehensive materiality assessment involving internal each of the four business divisions (property, hospitality, and external stakeholders in 2011. Through that highway and energy) in face-to-face interviews to collect assessment process, we identified key stakeholders who updated information and measure progress relating to can affect and/or are affected by our operations in Hong social and environmental aspects of the business. The Kong and China, which includes our employees, suppliers, following three core areas and their relevant key material business partners, local communities where we operate, issues were identified as important topics during these NGOs, customers, tenants, investors and shareholders. interviews: Since then, we have continued to use stakeholder feedback to review our material issues each year, and

Community Involvement CORE AREAS The Environment and Development Labour Practices

KEY MATERIAL ISSUES • Pollution prevention • Community involvement • Conditions of work and • Sustainable resource use • Social investment social protection • Protection of the • Employment creation • Health and safety at environment and skills development work • Climate change • Employment and adaptation employment relationships

For more information on our ongoing stakeholder engagement activities and a list of our material issues, please see pages 56 and 60 of the appendices.

10 HOPEWELL HOLDINGS LIMITED Caring for Our People

The success of HHL would not be possible without the valuable contribution and commitment of our employees. As of 30 June 2017, our Group is made up of 4,873 employees across all divisions including our JVs. Our Group considers each employee as an important asset and to facilitate their success professionally and personally, we offer regular training to support their career development while providing a safe and healthy working environment.

37.5% FEMALE

62.5% MALE

SUSTAINABILITY REPORT 2016/17 11 Caring for Our People

BUILDING THE CAPACITY OF OUR TEAM we strive to equip our staff with the tools and guidance they need to effectively do their work. We provide a series of seminars and training sessions for the continuous growth of our employees. In total, 7,934 We also offer personal development training to promote training hours were provided during the reporting period. and enhance staff mental health with positive psychology We design our staff training based on three important workshop to encourage positive thinking which can also aspects: professional development, compliance in the be applied in the workplace. To increase staff’s financial workplace and personal development. Professional savviness, we invited speakers from the Mandatory development training activities are designed to provide Provident Fund (“MPF”) Scheme Authority to present at knowledge and tools for staff to apply to their daily work the MPF-Plan for the Future seminar. Staff in attendance life as well as to add value to their long-term career learned how to meet retirement needs through MPF and development. With the addition of compliance training, other methods of saving.

 Coaching training Professional  Service excellence workshop  Housekeeping training Development  Personality training  Health and safety training

 Brie ng on anti-corruption laws Compliance in  Personal Data (Privacy) Ordinance brie ng the Workplace  Equal Opportunities brie ng  Competition Ordinance brie ng

Personal  First-aid training and certi cation  Application of positive psychology Development  MPF and nancial planning

External training is offered to power plant staff to explore Staff from our property and hospitality divisions are also the latest and newest updated technology available in encouraged to further enhance their professional skills in terms of power generation and emissions control. topics that are not offered in-house. Tuition Information received at the training will be shared with reimbursement is made available to eligible staff who relevant technical staff. We also launched a mentorship complete job-related training courses to enhance their programme within the internal operations of our power skills for their daily work, some examples of reimbursable plant to encourage existing staff to train new staff courses and topics include Chinese Civil Law, Master in members. Mentors help new staff members master their Excel VBA and Certificate in Hong Kong Salary Tax. technical skills, become familiar with the company’s management system and integrate into the daily operations and culture of the company.

12 HOPEWELL HOLDINGS LIMITED Caring for Our People

6.88 5.34 average number of training hours average number of training hours completed by FEMALE employees completed by MALE employees

average number of training hours 5.90 completed by MANAGERIAL STAFF

average number of training hours completed by 5.96 GENERAL STAFF

TRAINING

In addition to offering training workshops and seminars, we proactively reached out to our employees to find out their training needs and incorporate them into our training plan for the future. Results from our survey revealed that the training needs in the following areas:

PROBLEM-SOLVING COACHING INTERPERSONAL & NEGOTIATION CREATIVITY SKILLS SKILLS COMMUNICATION SKILLS SKILLS

HEALTH & SAFETY training are done to promote a culture of safe operations The health and safety of our employees is important to us by strengthening staff’s awareness. Safety concerns in our and we are vigilant in addressing workplace health, safety existing operating infrastructures in Hong Kong are and environmental risks and adopting relevant measures relatively low as they mostly pertain to fire safety issues, to increase the awareness of our employees. Different and fire drills are conducted periodically. As for our power approaches are taken to address safety issues at each plant operations, health and safety issues are considered business division. Generally speaking, we provide training material given the possible environmental risks and in the form of drills and seminars to educate staff on the impacts of potential accidents. importance of safety and precautionary measures to prevent accidents. Safety Operation Month was enforced The recorded Group-wide injury rate this year at both highway JVs where a series of workshops and was 27.76 per 1,000 employees (excluding our JVs). No work-related fatalities in any of our business divisions was reported.

SUSTAINABILITY REPORT 2016/17 13 Caring for Our People

Safety Training at Heyuan Power Plant The drill scenario was that a fire had broken out in a guest room as a result of careless disposal of a lit cigarette, Our occupational health and safety (“OHS”) practices at causing dense smoke to seep into the corridors which was the power plant follow the labour law of the PRC. then detected by the Hotel Security Control Fire Link Employees are trained and qualified to conduct their jobs System. Four fire engines and 20 some fire fighters arrived but also have the right to refrain from executing tasks in at Panda Hotel during the drill along with senior fire situations where they feel unsafe. We conducted a new officers as observers. A debriefing session was held large-scale safety training event at Heyuan Power Plant in immediately afterwards by the Police and FSD to discuss June 2017 to strengthen emergency response in the event what was done well and areas for improvement. In of an ammonium leakage. The objective of the drill was to general, the drill went smoothly and staff were prepared. practise the implementation of our “Ammonia Leakage Some areas for improvement identified by FSD and the Emergency Plan”, “Emergency Response Plan” and Police dealt with the roll call procedure and location of “Environmental Emergency Contingency Plan”. The drill command post. 79 Panda Hotel and Panda Place was based on a scenario where an ammonium leakage employees participated in the drill. was detected, causing the leak to expand to other areas which could lead to an explosion. Staff were required to follow protocols of the emergency response plans and to evacuate people, control the leakage to prevent an explosion from happening and rescue injured people from the site. The drill allowed 180 of our staff members to familiarise themselves with their expected roles during an emergency event.

Health and safety training related to fire safety, operation of special equipment, erecting and inspecting scaffold and first aid were also provided. WORK-LIFE BALANCE Our Group believes the physical and mental well-being of our employees play an important role in their ability to succeed. We offer various support platforms for our employees to relieve emotional stress and encourage physical activities.

Our HH Social Club was established as a way for our employees to find balance between work and leisure by offering them opportunities to participate in volunteering, leisure activities or host interest group events. Some of the activities held last year include charity runs and basketball games to encourage exercise. Due to the high Fire Drill at Panda Hotel participation rate of our sport-related events, we hired a coach for our HH Social Club Running Group. Regular To ensure the safety of staff and hotel guests in case of a training by the coach is offered twice a month. Prior to fire, Panda Hotel conducted a comprehensive fire drill in running competitions and events supported by the Group, coordination with the Police and Fire Services Department namely McDull Charity run, Heifer Race to Feed 2016 and (“FSD”) in September 2016. To prevent guests from the Standard Chartered Marathon, our coach will adjust mistaking the drill as a real fire, prior announcements were the training programme based on the needs and goals of made by setting up signage in the main areas of the hotel. our runners for these events.

14 HOPEWELL HOLDINGS LIMITED Caring for Our People

Established under HH Social Club, our Photography staff. To nurture their physical health, we organised sports Group is organised by our staff who have strong interest competitions where around 800 staff came together to in photography. Activities held by the Photography Group participate in various sports activities. To enhance their included portrait taking, landscape photography at well-being and demonstrate staff appreciation, we Ngong Ping 360 and a cyanotype workshop. These events organised festive celebrations, annual dinner and a were open to all staff to join. cooking contest. On hot summer days, we organised delivery of cold beverages to our front-line staff. Similarly, our highway division in China also offered activities and events to promote the well-being of our

Ocean Park Halloween Adventure 2016 For the first time ever, our Group invited employees from all four business divisions to join our Ocean Park Halloween Adventure as a way to develop team building skills, enhance team spirit and increase staff’s environmental awareness. Participants enjoyed a day at Ocean Park where a series of team-building activities were held. Seven teams were formed as part of a scavenger hunt competition and they were required to visit different check points of the theme park to find clues and answers. Through the competition, staff learned about sustainable seafood and

environmental protection. At the end of the competition, lunch was provided at Ocean Park’s Tuxedos Restaurant where staff enjoyed lunch while watching penguins up close. During lunch, two winning teams from the team building activities were selected and awards were presented by our senior management. This event was not only an occasion for our staff from different business divisions to get to know each other, it also allowed them to collaborate and worked together in a light-hearted setting to achieve a common goal. After lunch, staff enjoyed the rest of the day at Ocean Park Halloween Fest.

The venue of this event was chosen by our staff through our employee survey. With this approach, we hope to encourage more staff to participate in our events.

SUSTAINABILITY REPORT 2016/17 15 Caring for Our People

“Night Safari — Action in the Starlight” at Mai Po Nature Reserve with WWF-Hong Kong As part of our “Go Green Workplace Campaign” to promote staff environmental awareness, we engage our NGO partners to help educate our staff. This year, in collaboration with WWF-Hong Kong to increase staff knowledge about the ecology of Hong Kong and importance of nature conservation, we joined a guided tour “Night Safari — Action in the Starlight” at Mai Po Nature Reserve. Staff had the opportunity to experience the most protected wetland habitat in Hong Kong at night when egrets return to their night roosts and bats, fireflies and amphibians come out to forage.

During the tour, our guide informed staff about the ecological functions and importance of wetland habitats, the threats these habitats face and what we can do to help protect our natural environment.

We continue to provide our Employee Assistance Employee Benefits and Welfare Programme (“EAP”), where employees have free access The Group provides fair and competitive remuneration to counselling services. The 24-hour hotline is confidential packages for our employees. To do so, each year we and is made available to our employees and their conduct external and internal benchmarking of salaries. immediate family members. This hotline can be used to We also provide discretionary bonuses as additional discuss a wide range of topics including stress and financial incentives. Medical insurance and full paid leave emotional management, interpersonal relationship, career are also provided including marriage, paternity, development, job adjustment, marital relationship and compassionate and examination leave. Eligible staff are parenting skills. Since the Group began the programme in entitled to retirement benefits in accordance with the 2011, 81 training workshops and seminars covering topics labour laws in Hong Kong and Mainland China. related to work such as time management and communication as well as personal skills including positive As a way to demonstrate our appreciation for each of our psychology, personality trait and tactics for quality sleep employees, every quarter we organise a birthday party have been offered. Health booth was also made available for staff whose birthdays fall within that period. Each staff to staff to enquire about Chinese medicine practices and is given a birthday gift at the party. During the week of experience shoulder massages. Forty-four hours of health their birthday, our Human Resources department will booth was provided for employees. deliver a cake voucher and issue an e-birthday card to celebrate their special day. Panda Hotel Recess Room For our Panda Hotel staff, we have set up a recess room for staff use during their rest periods. Separate rooms are available for females and males for their sleeping needs, especially those working overnight shifts. Staff are allowed to sleep in the beds provided in the room on a first-come-first-serve basis. In the female Recess Room, a breastfeeding area is provided for their nursing needs.

16 HOPEWELL HOLDINGS LIMITED Caring for Our People

TALENT ACQUISITION the 24-month programme and equip themselves with further skills for advancing to managerial positions. The Similar to previous years, we continue our recruitment of programme allows trainees to rotate through different young talent through various programmes including business divisions in the Group, exposing them to Management Trainee Programme, Hospitality Trainee different roles in each business covering property, Programme, Summer Internship Programme and by hospitality, infrastructure and corporate functions. The recruiting Hong Kong athletes. training and development of this programme comprises Management Trainee Programme four parts: in-house training where seminars and workshops are held, corporate events including As of this year, the Hopewell Management Trainee (“MT”) conferences and meetings, on-the-job training and Programme has been established for more than a decade. education sponsorship where Hopewell provides learning This year, we recruited four new trainees into our 24-month opportunity for their career development. programme which offers young talent with opportunities to unveil their potential and explore their career aspirations. All Our MT Programme yielded positive results and trainees trainees are expected to move along a “career ladder” after provided positive feedback on the programme.

Senior Progression Management

Middle Career Management

Supervisory Level

Management Trainee 24-month Management Familiarisation Trainee Programme

“I obtained an all-round understanding of Hopewell after the completion of my MT programme. I rotated through 15 departments across property-related departments and corporate functions. The close linkage between departments allowed me to understand the operation and strategy execution of the Company as a whole. The programme paved my way to becoming a supervisor and then assuming in a managerial position in property leasing.” — Athena Wong, Assistant Manager — Leasing (2013 MT Intake — Property)

SUSTAINABILITY REPORT 2016/17 17 Caring for Our People

“Towards the end of each department rotation, I always encounter the same question “Which is your favourite department?”. Not sure about the answers of my peers, but the best part of my MT journey has always been the unique chance of experiencing the roles and culture of different departments. I believe this all-round exposure is vital for our growth and adventure.” — Jenny Liu, Senior Officer — Project Development (Hospitality) (2014 MT Intake — Hospitality)

“The most valuable lesson I learned from the Summer Internship Programme Hopewell MT Programme is that challenges always come with solutions. The programme provides me Every year, we co-ordinate with different business units with hands-on experience in project management. and offer summer internship vacancies for undergraduates Together with product knowledge and frontline and secondary school students as a way for them to gain experience I got during my rotation, the programme practical working experience through exposure to daily has equipped me to handle various project tasks operations of our business. Each student is offered on-the- with innovative yet practical ideas. If you are looking job training and career coaching opportunities for for a programme which can prepare you for future approximately three months. In recognition of our leadership roles, Hopewell MT Programme will be involvement with underprivileged teenagers of Holland your wise choice.” — Calvin Lam, Senior Officer — Hostel, we received the award of “Outstanding Volunteer” Marketing & Promotions (2015 MT Intake — from the Hong Kong Student Aid Society in 2016. Entertainment) Recruiting Hong Kong Athletes We continued to participate in the Hong Kong Athletes Career and Education Programme (“HKACEP”) organised by the Sports Federation and Olympic Committee of Hong Kong, China. Its aim is to facilitate the employment Hospitality Trainee Programme of former elite athletes following their retirement from Our Hospitality Trainee Programme updated its professional sports. We have been recruiting athletes and recruitment criteria to attract not only degree graduates, integrating them into our MT Programme and Summer but also diploma and higher diploma graduates to Internship Programme since 2009. In 2016, we positively influence a wider group of young adults. The participated in the HKACEP Athlete Career Exhibition programme also created opportunities for our internal staff where 20 organisations set up information booths to from other business divisions to join this trainee introduce athletes to the nature of their business as well programme. We offer job rotation within our hospitality as their job application process. portfolio so that participants are able to gain experience in customer service, operations, food and beverage, The Metroplex Cinema and KITEC banquets. Aside from on- the-job training, training workshops and a mentoring and buddy scheme is provided.

18 HOPEWELL HOLDINGS LIMITED Protecting Our Environment

At HHL, protecting the environment is also part of protecting our local community. With our business operations located in close proximity to existing residents, we take full consideration of the potential environmental impacts that could occur as a result of each business decision we make. We acknowledge that each business division poses different environmental impacts and thus, each business division is equipped with environmental protection measures which specifically address those key impacts.

Similar to previous years, key environmental concerns of our business include emissions, waste and pollution. Emissions generated from our property, highway and power plant operations are of relatively higher concern, followed by waste generation. Waste generated from each business division are of different nature and need to be managed differently. Lastly, water and noise pollution are associated with operations of our highway and power plant.

To encourage and promote environmentally-friendly habits to our employees, we launched and continued to run a “Go Green Workplace” campaign. Through this campaign, we carried out activities and issue reminders to raise environmental awareness especially relating to energy and materials consumption reduction, including reminding staff to set the air conditioner temperature to between 24°c and 26°c and limit paper use when printing. A Green Captain from each department is nominated to execute and drive green office initiatives.

SUSTAINABILITY REPORT 2016/17 19 Protecting Our Environment

EMISSIONS Energy Consumption The total direct carbon dioxide emissions generated from all business operations is estimated to be 3,929 kilo- 0.1% tonnes during the reporting year, with the mass majority Power Plant emitted from Heyuan Power Plant. Understanding the Property and proportion of emissions generated from our power plant, Hospitality we also saw this as an opportunity to explore measures to Highway reduce emissions. Solar panels were installed back in 2014 to reduce energy consumption with approximately 2GWh renewable energy generated in 2016/17. During the 99.9% reporting year, we completed the installation of our new “superlow” emissions system to reduce air pollution. We are also now in the process of installing a steam supply system to reroute steam generated to nearby factories. WASTE MANAGEMENT Details of environmental improvement measures of the Waste generated from each business division are of power plant are provided at the end of this section. different nature and need to be managed differently. Overall, our power plant sector produces relatively more waste than our property and hospitality and highway businesses. Waste generated from our highway operations mainly deal with rubbish collected along the highway discarded by road users, such waste include plastic bottles, leftover foods and glass bottles.

Property Hospitality Highway Power Plant

Electronic Waste x

Plastic Waste x x x

Food Waste x x x

Glass x x x

Chemical Waste x x x

Commercial Waste x

Construction Waste x

312,500 (100% recycled Total amount of waste generated (tonnes) 12,558 8,379 or reused)

20 HOPEWELL HOLDINGS LIMITED Protecting Our Environment

Our property business division generates a relatively NOISE AND WATER POLLUTION diverse group of waste material ranging from daily Hopewell Centre, QRE Plaza, Panda Place, Broadwood customer waste to construction waste arising from new Twelve, Wu Chung House and Villa Lotto obtained the development projects. To address this, our property “Waste Water Discharge Licence” from EPD to ensure business division takes a multipronged approach by that our effluent discharge meets regulatory standards participating in and applying for various waste recycling prior to discharge. programmes, initiatives and permits involving NGOs and government: Noise and water pollution generated from our highway and power plant operations are on-going issues. Throughout the past, we have taken different approaches to minimise impacts. We have installed more than 6.1 km • E-waste recycling programme which is offered of noise barriers along sections of the Western Delta by ALBA IWS on behalf of EPD Route and planted trees along our highway to deflect traffic noise away from residents.

In terms of potential water pollution issues of our power plant, we have implemented a zero-wastewater discharge • Computer and Communication Products system where no wastewater is released into the Recycling Programme by EPD environment. All wastewater is treated on-site without contaminating surrounding natural habitats.

ENVIRONMENTAL PROTECTION MEASURES • Registered as a chemical waste producer Every year, we continue to update our operational under the Waste Disposal Ordinance systems and corporate practices to improve our (Chemical Waste) (General) Regulation environmental performance both internally and externally. Decisions to implement specific environmental measures are determined by each business division based on their capacity and key environmental concerns. Food waste continue to be one of the main issues of our hospitality division and we take every possible measure to reduce the amount of food waste generated. Our Group continues to arrange for food waste collection every night at Panda Hotel and IT Catering and Services Limited (“ITC”). During the reporting period, 135,337 litres of food waste were collected from Panda Hotel and ITC to produce animal feed. 6,528 litres of used cooking oil were also collected from Panda Hotel and ITC to create bio- diesel. An on-site food waste composter is available at Broadview Villa since 2015.

As for Heyuan Power Plant, all waste generated (fuel ash, gypsum, slag, crystalline salt, pebble coal and mud/ sludge) are transformed into useful building materials such as concrete, plasterboard, bricks, industrial-grade salt, fuel and eco-bricks at 100% recovery rate.

SUSTAINABILITY REPORT 2016/17 21 Protecting Our Environment

BEAM Certification As part of our approach to be more environmentally considerate, we have committed to meet the Building Environmental Assessment Method (BEAM) Plus requirements for all new developments. With major properties on the drawing board including Hopewell Centre II, Hill Side Terrace Cluster, and 153–167 Queen’s Road East, we use this commitment as an opportunity to improve our future environmental performance.

In general, BEAM Plus examines site and material aspects, energy and water use and indoor environmental quality to ensure that certified buildings are safer, healthier, more comfortable, more functional and more efficient than similar buildings that have not achieved this standard.

Preparations for Hopewell Centre II commenced with an overriding aim to achieve BEAM Plus certification standards. To do so, design and planning elements such as open green space, extensive tree planting, and the use of locally produced materials, automatic sensors and demand controlled systems to increase energy efficiency and water resource management have been incorporated into the design.

Power Plant Upgrades GWh in 2015/16 to 4,867 GWh in 2016/17. In correlation to the power generated, our CO emission levels also Since the establishment of Heyuan Power Plant, we are 2 aware of the potential environmental impacts resulting increased this year compared to the previous year. from emissions and wastewater generated from its operations as well as the concerns of the local community. With this in mind, each year we implement all possible measures to ensure that our operation is in compliance with the environmental laws in China. In addition, we take a proactive approach to upgrade emission treatment facilities and install renewable energy facilities to minimise our environmental impact. Our power plant is equipped with a zero-wastewater discharge system and flue gas cleaning technology. With the implementation of our zero-wastewater discharge system, wastewater is treated, which is reused in our power generation process. In addition, fly ash and plaster are utilized 100%. The amount of power generated during this reporting year was higher than that of the previous year, from 4,050

During this reporting year, we added two new system upgrades, the new “superlow” emission system and a steam supply system.

22 HOPEWELL HOLDINGS LIMITED Protecting Our Environment

NEW “SUPERLOW” EMISSION SYSTEM:

• Further reduces the NOx, SOx and particulate matter (PM) emitted • The emission level complies with the China Flue Gas Super Low Emission Standard (10mg/m3 for dust, 35mg/m3 3 for sulphur dioxide (SO2) and 50mg/m for nitrogen oxide (NOx))

STEAM SUPPLY: It will be implemented in 2017/18 and is expected to help: • overall energy ef ciency as the factories will no longer need to operate their own boilers to create steam • reduce overall air pollution emissions since factories’ small boilers will not be used

SOLAR PANELS:

• 2GWh of energy has been generated for the plant’s operation in 2016/2017 • Generated RMB1.6 million economic bene t in 2016/2017 nancial year

ZERO WASTEWATER DISCHARGE SYSTEM:

• Wastewater is treated on-site by an in-house water treatment system • Treated water is reused in the production process • Sludge generated from water treatment is converted into bricks to be used as building material

SUSTAINABILITY REPORT 2016/17 23 Protecting Our Environment

New Electric Vehicle (“EV”) Chargers Site General As a business operator in such densely populated areas in (Hong Kong only) EV Charger Tesla Chargers

Hong Kong and the Pearl River Delta Region, air pollution Hopewell Centre 8 20 is no doubt an environmental issue we face each day. Our (10 superchargers, businesses in properties and highways include parking 10 regular chargers) facilities for vehicles and we have taken this as an KITEC 4 14 opportunity to encourage and promote the use of (8 superchargers, environmentally-friendly vehicles by providing EV chargers 6 regular chargers) for customers. Panda Place 4 4 superchargers

Highways in China Wu Chung House 9 0

In November 2016, six EV chargers were installed at Broadwood Twelve 20 0 Houjie service area of the GS Superhighway to accommodate the increasing number of EV drivers. Our Energy-saving on Highways GS Superhighway is the first highway in Guangdong To reduce energy consumption in our highway operations, Province to provide such services and enables all conventional low mast sodium lamps had been uninterrupted travel between Guangzhou and Shenzhen replaced with LED lights on 122.8 km of the GS for EV drivers. Promoting and offering EV support facilities Superhighway in 2013. In 2016, we refitted high-pole along our expressways aids our highway emissions lamps with energy-saving lights to further reduce our reduction goal. electricity usage. As for the Western Delta Route, LED lights along tunnel sections and toll plazas were installed Hopewell Centre & KITEC in 2013. Thirty-four wind and solar powered surveillance With Hopewell Centre located in the densely populated cameras are in operation along the Western Delta Route. Wan Chai district, we strive to provide support facilities for EVs to promote the use of EVs and reduce street level For our operation vehicles, we continue to seek emissions generated by vehicles. This year we added opportunities to expand our green car fleet. Currently, our seven general EV chargers and 12 Tesla chargers to meet highway division has three petrol-electric hybrid vehicles the high usage rate and increasing demand for EV and one EV, two of which are available for cross-border chargers at Hopewell Centre. Altogether, we have a total business trips between Hong Kong and Mainland China. of 28 EV chargers at Hopewell Centre. We have more The use of petrol-electric hybrid vehicles reduces about than doubled the number of EV chargers at Hopewell 40% of fuel consumption compared to our other Centre this year. Also, we have added four Tesla conventional vehicles. superchargers at KITEC to promote the use of EVs.

24 HOPEWELL HOLDINGS LIMITED Giving back to the Community

Hopewell is closely connected with the local communities where we work, live, and thrive. We acknowledge our success is correlated with support from our community, and this year, we continued to give back to our local communities by supporting NGOs, organising and hosting events or activities and providing volunteers to community groups that need an extra hand. To guide our community initiatives, we continue to support and organise events and programmes based on our four core sustainability initiatives in environmental protection, community engagement, youth development, and sports, arts and culture.

16 Key NGO partners

HK$2.7 million donated to NGOs in Hong Kong (including cash and in-kind donations)

About 735 volunteering hours contributed by our staff

Participated in103 community programmes

SUSTAINABILITY REPORT 2016/17 25 Giving back to the Community

ENVIRONMENTAL PROTECTION Green-Christmas at E-Max Read More Initiative 2016 The potential of used materials is limited only by our To demonstrate our support to the Read More Initiative imagination and to demonstrate this, we created our 2016 co-organised by Cultural & Leisure Services Green-Christmas Village at E-Max with used materials. Committee of Wan Chai District Council and HK Sharing, Snowmen made of used paper, Christmas tree ornaments book collection box was provided at Hopewell Centre made with packaging and presents made from old wine between October 2016 and February 2017. Its objective is boxes were displayed. Guests could take photos with to promote interest in reading and at the same time, Santa Claus on his sleigh made out of pallets. With this promote environmental awareness by facilitating book event, we hoped to celebrate the holidays with our guests reuse. This initiative created a platform for books to be and at the same time promote environmental awareness reused, turning one person’s waste into another’s so they can celebrate their holidays with the concept of resource. At the end of the book collection period, the waste reduction in mind. books were categorised by volunteers for distribution to various groups in need. Throughout the programme 2,000 books were collected for redistribution.

WWF — Hong Kong Earth Hour We continue to support WWF — Hong Kong Earth Hour, an initiative held in March of every year when all lights are turned off for an hour to raise awareness of how we can all be a part of the solution to tackle climate change. This year, both our properties and highway divisions participated. Exterior and interior office lighting at Hopewell Centre, QRE Plaza, GARDENEast, Panda Hotel, Panda Place and E-Max were switched off during this event.

26 HOPEWELL HOLDINGS LIMITED Giving back to the Community

COMMUNITY ENGAGEMENT Supporting Local NGOs by Panda Hotel Tuen Ng Volunteer Visit to Elderly Homes Panda Hotel’s donation programme supports selected This year marks an outstanding year for our Tuen Ng NGOs. For each dining transaction that takes place at Volunteer Visit event, as volunteers visited 200 more Panda Hotel, HK$5 is added to each bill and donated to elderly than previous years. Black garlic dumplings were one of the following six NGOs without deducting any cost prepared by our Panda Hotel staff as part of the donation and expenses: from the Group. With this year’s theme being “physical health”, volunteers arrived with water bottles, towels and • Evangel Children’s Home body wash as gifts to the elderly. Prior to the visits, • St. James’ Settlement volunteers were trained by social workers on how to teach • The Hong Kong Joint Council of Parents of the the elderly simple exercises and stretches they can do Mentally Handicapped regularly to maintain physical health. Elderly visits by our • Youth Outreach HH Social Club volunteers concentrated around areas • The Parents’ Association of Pre-school Handicapped where our businesses operate as well as its surrounding Children areas, including Tsuen Wan, Kwai Ching, Kwun Tong and • Sheng Kung Hui St. Christopher’s Home Wan Chai. This year, the NGOs received a total of HK$97,945 through this programme.

Blood Donation 75 volunteering staff from our highway division donated blood in Shunde District and Luogang District between July and October 2016.

SUSTAINABILITY REPORT 2016/17 27 Giving back to the Community

Hopewell Junior Volunteers Programme This year marks the second year of our Hopewell Junior Volunteers Programme. Our objective is to encourage our staff and their children to engage with underprivileged children through a series of activities to develop meaningful friendships and positively influence their growth. In collaboration with St. James’ Settlement, a group of children between the ages of six and 13 participated in a series of activities hosted by us together with Hopewell staff and their children of a matching age range. The activities for this year’s programme include: KITEC Baby Care Room for Office Tenants • Kin-Ball Experience Day To better support the needs of growing families, we are • 3D Movie Day at The Metroplex refurbishing the Baby Care Room at KITEC this year. The • Western dining at Panda Hotel to learn table Baby Care Room offers a comfortable place for nursing manners and western dining skills. A Graduation mothers and children who need parental attention. Once Ceremony was organised at the end of the the refurbishment is completed, the Room will have a new programme sitting area, sink with tap and soap dispenser and electrical outlets for breast pumps, and nappy changing tables. This facility will also be made available to our KITEC staff.

28 HOPEWELL HOLDINGS LIMITED Giving back to the Community

YOUTH DEVELOPMENT The Metroplex’s Engagement with Youth Groups To encourage young people to explore their interest in film-making, The Metroplex cinema at Kowloon Bay offers movie screening opportunities for local community groups to showcase their talent. Last year our venue sponsored the 40th HKIFF Outreach Programme: 2016 HKIFF Students Summer Programme and the 2017 Final Year Project Screening for the Academy of Film of Hong Kong Baptist University. New Fitness Centre at KITEC for Office Donations and Visits to Rural Schools Tenants Every year, staff of Western Delta Route JV organise visits The communities where we operate have shown great to rural primary schools in Meizhou. This year, more than interest in sports-related activities we hosted in the past. 30 staff joined the visit. To provide support in creating a As a response to this interest and to further our better learning environment, 40 tables and 100 sets of community investment objectives, we built and opened a teaching materials were donated to students. fitness centre at KITEC this year. The centre is available to all KITEC office tenants free of charge. A variety of fitness SPORTS, ARTS AND CULTURE machines are provided including treadmills, cycling Sponsorship of Wanchai Sports Federation machines and elliptical gliders. Soccer Team With aims to encourage young people’s interest in sports and strengthen the Group’s support for the Wan Chai community, we continued to sponsor the Wanchai Sports Federation Soccer Team. This marks our third year of support to this organisation.

1563’ at the East Live House & Restaurant Supporting the arts and culture of Hong Kong is one of our four key areas of initiatives to build a sustainable community. September 2016 marked the grand opening of 1563’ at the East Live House & Restaurant, reviving Hong Kong’s live house music scene. Located at Hopewell Centre in the heart of Wan Chai, 1563’ at the East Live House & Restaurant is a dining and live performance venue which hosts local and international musicians for audiences who seek originality. The live house emphasises showcasing Hong Kong’s music talent and allocates 60%– 70% of band time slots to musicians who drive the local music scene.

SUSTAINABILITY REPORT 2016/17 29 Giving back to the Community

World Music Day in Wan Chai The East, Lee Tung Avenue and Alliance Francaise de Hong Kong hosted the “Wan Chai — World Music Day” together in June at the open piazza of Hopewell Centre. Free performances by 11 local bands, artists and musicians were offered at the event. Visitors danced to delightful swing music and relaxing atmosphere.

Alliance Francaise de Hong Kong also hosted a free “Speak Dating” French language workshop. Instructors from the Alliance taught beginner level French to our neighbours to celebrate “Le French May”. We also hired a florist to host a workshop to teach children how to make mini-green plants for their homes.

Wan Chai Wine Walk & Music Stroll The East and Lee Tung Avenue jointly held the inaugural “Wan Chai Wine Walk & Music Stroll” in June. More than 30 booths offered premium whiskies, gold flakes champagnes, Asian spirits, fine red and white wines and local handcrafted beer free of charge. It is estimated that 1,000 people participated in the event. Guests enjoyed an afternoon with live music and wine. Two calligraphy artists were hired to write on wine glasses for guests to take home. World Green Organisation is the beneficiary of the event.

30 HOPEWELL HOLDINGS LIMITED Meeting Customer Needs

Providing quality customer service defines the success of daily basis. Guests comment cards are also provided in all our business. With such a large and diverse customer hotel rooms and restaurants. In situations where base, each of our business divisions has adopted specific unsatisfied guests are encountered, our staff will assess strategies to provide quality customer care. Our customer the nature of their complaint and provide appropriate base covers tenants, residents, shoppers, hotel guests, compensatory measures. Findings from this programme diners, audiences, road users and electricity grid revealed an overall guest satisfaction score of 8.8 points company, all with different expectations and needs. Our out of a maximum of 10 points during the reporting year. hospitality division, followed by our property division, interacts closely with customers every day, and as such providing quality customer service is especially important for these operations.

CUSTOMER SATISFACTION Understanding the needs of our customers play a vital role in our success. Each year, we engage customers of our property business division in customer satisfaction surveys and interviews at four of our major properties including Panda Place, KITEC, QRE Plaza and Hopewell Centre to ensure that customers’ voices are heard.

For our highway operations, every year in June or July According to the Management Service Survey both JVs host a month-long campaign which aims at conducted at the end of 2016, all property sites raising service standards and maintaining customer reported high rate of customer satisfaction between satisfaction. Free travel handbooks and emergency 92%–97%. medicines are provided to road users and service consultation points are set up for public enquiries. The Elite Club was established in Hopewell Centre and KITEC as a way to better engage and communicate with ROAD USER SAFETY our tenants. The club is intended to give priority to our The safety of our road users is an important consideration tenants when it comes to their service needs. for our highway operations and ensuring safety is always our top priority. To do so, we have equipped the GS As a way to obtain feedback from our hotel guests at Superhighway and the Western Delta Route with full Panda Hotel, we established a Guest Satisfaction Survey coverage surveillance cameras. In addition, the GS System to collect guests’ comments. Every day, comments Superhighway JV also set up a patrol and rescue team of received online through our 13 partner travel agents are over 200 well-trained professionals who is on standby collected, reviewed and presented to our management 24-hours a day and can identify accidents and arrive at the team to identify opportunities for improvement. Another scene to handle accidents efficiently. component of this programme requires our Guest Service Manager to approach guests on-site proactively to obtain comments on their experience at Panda Hotel. A minimum of at least ten comments are collected and reviewed on a

SUSTAINABILITY REPORT 2016/17 31 Meeting Customer Needs

Changeable message signboards along the GS information is also released to the public through a Superhighway and the Western Delta Route provided provincial customer service website (www.02096998.com), road users with the latest traffic conditions and keep them a provincial customer service mobile application and alert of sudden changes ahead. Up-to-date traffic WeChat platform.

Good Deeds by our Highway Staff Our highway division front-line staff often encounter situations where they need to go above and beyond their required duties to help road users in need. From lost personal belongings to providing medical assistance, we are proud of the great work that our staff has done to help those in need.

At the GS Superhighway, our maintenance team employee found a bag at the self-service lane containing a wallet, bank cards, cash and other documents. He returned it to the owner with the help of other staff at Luogang Toll Station.

As the Western Delta Route, our staff identified an escaped cow wandering along the highway near Shunde Toll Station. He was able to identify its origin and returned it to its owner.

At Ronggui Toll Station along the Western Delta Route, staff assisted a pregnant woman in labour on the highway to the hospital for delivery by coordinating with ambulances, patrols and traffic police to ensure that she is safe and arrives at the hospital in a timely manner.

32 HOPEWELL HOLDINGS LIMITED Appendix: Data Tables

ECONOMIC PERFORMANCE TABLE

(HK$ million) 2013/14 2014/15 2015/16 2016/17

Revenue Property letting, agency and management 890 1,015 1,119 1,149 Hotel, restaurants and catering operation 454 484 451 465 Property development 749 1,071 4,364 1,605 Toll road investment 2,419 2,406 2,408 2,463 Power plant 1,233 1,028 774 833 Treasury income 247 231 119 75 Others – – – –

5,992 6,235 9,235 6,590

Earnings before interest and tax (“EBIT”)(1)

Property letting, agency and management 556 632 739 768 Hotel, restaurants and catering operation 127 132 100 96 Property development 299 185 463 434 Toll road investment 667 623 610 720 Power plant 153 164 105 32 Treasury income 247 231 119 75 Others –129 –130 –192 –131 Redevelopment gain on 155–167 QRE – 300 – – Completion gain on 200 QRE retail portion – 120 – – Land conversion gain of Hopewell Centre II – – – –

EBIT 1,920 2,257 1,944 1,994

Operating cost(2) 883 745 715 879 Employee wages and benefits(3) 443 459 471 482 Payment to providers of capital(4) 1,057 1,241 1,179 1,183 Government Tax 329 267 235 386 HK Profits Tax 61 69 64 78 PRC taxation 229 130 118 299 Deferred tax 39 68 53 9 Charitable donations 1 2 1 1

Notes: (1) Please refer to Management Discussion and Analysis section of the Annual Report 2016/17 for definitions of Revenue and EBIT above, and reconciliation with Consolidated Statement of Profit or Loss and Other Comprehensive Income. (2) Includes cost of sales and services, selling and distribution costs, administrative expenses, but excludes staff costs and charitable donations. (3) Represents staff costs disclosed in the Annual Report, including directors’ emoluments. (4) Represents dividends recognised as distribution during the year plus finance costs.

SUSTAINABILITY REPORT 2016/17 33 Appendix: Data Tables

ENVIRONMENTAL PERFORMANCE TABLE Property and Hospitality Division

Indicator Unit 2013/14 2014/15 2015/16 2016/17

Energy use Purchased electricity MWh 56,986 59,047 58,854 55,222 GJ 205,148 212,568 211,874 198,799 Industrial diesel Litres 1,519 692 746 1,420 GJ 58 27 29 55 Diesel oil Litres 171,818 162,926 196,070 195,610 GJ 6,161 5,843 6,972 7,015 Petrol Litres 19,938 20,025 17,937 19,379 GJ 642 644 577 624 Town gas GJ 20,527 20,797 21,348 21,265

Emissions

Direct CO2e emissions Tonnes 2,116 761 2,358 2,819

Indirect CO2e emissions Tonnes 38,819 40,600 36,248 34,211

Other indirect CO2e emissions Tonnes 290 350 354 422 SOx g N/A N/A 5,905 6,363 NOx g N/A N/A 110,358 85,484

Waste disposal Construction waste Tonnes 4,150 4,091 3,712 2,432 Commercial waste Tonnes 132,128 9,219 11,439 10,126

Waste recycled Paper Kg 208,662 280,040 288,596 276,752 Plastic Tonnes 5.79 43.14 2.96 1.89 Metals Tonnes 0.47 0.47 0.60 0.83 Food(1) Litres 331,417 305,088 122,586 135,337 Used cooking oil Litres 4,816 2,784 12,140 6,528

Water Fresh water used m3 395,780 483,132 470,957 500,452 Reused water m3 728 1,084 664 751

Materials used Paper Ream 9,538 10,581 10,984 11,020 Kg 23,831 25,279 27,175 27,494

(1) Data is provided by food waste recycler in 2016/17.

34 HOPEWELL HOLDINGS LIMITED Appendix: Data Tables

Highway Division

2013/14 2014/15 2015/16 2016/17 GS Super West Route GS Super West Route GS Super West Route GS Super West Route Indicator Unit highway JV JV Total highway JV JV Total highway JV JV Total highway JV JV Total

Energy use Purchased electricity (non-renewable) MWh 21,702 10,216(5) 31,917 21,823 10,653(5) 32,476 21,880 10,741(5) 32,621 20,306 10,428(6) 30,734 GJ 78,125 36,777 114,903 78,564 38,349 116,913 78,769 38,668 117,437 73,102 37,541 110,642 Intensity of electricity MWh/ consumption per person N/A N/A N/A N/A N/A N/A N/A N/A N/A 9.05 10.32 9.45

Renewable energy(1) MWh – 12.87 12.87 – 12.79 12.79 – 15.42 15.42 – 29.78 29.78 GJ – 46.33 46.33 – 46.03 46.03 – 55.50 55.50 – 107.20 107.20 Diesel Litres 439,872 23,110 462,982 408,610 19,136 427,746 320,448 21,443 341,890 245,523 17,419 262,942 GJ 15,774 829 16,603 14,653 686 15,339 11,491 769 12,260 8,804 625 9,429 Petrol Litres 509,007 275,949 784,956 485,867 275,110 760,977 430,244 278,729 708,972 354,702 275,312 630,014 GJ 16,380 8,880 25,260 15,635 8,853 24,488 13,845 8,969 22,815 11,414 8,860 20,274 LPG Tonnes N/A N/A N/A N/A N/A N/A 112 67 179 104 68 172

Emission

Direct CO2e emissions Tonnes 2,598 811 3,409 2,448 798 3,246 2,053 814 2,868 1,641 794 2,435

Electricity indirect CO2e emissions(2) Tonnes 20,015 9,422 29,437 20,040 9,783 29,823 19,602 9,810 29,413 17,617 9,047 26,665 SOx Tonnes N/A N/A N/A N/A N/A N/A 0.11 0.07 0.18 0.10 0.07 0.17 NOx Tonnes N/A N/A N/A N/A N/A N/A 28 15 43 25 15 40

Water Fresh water used m3 392,869 126,231(5) 519,100 365,829 165,077(5) 530,906 333,686 151,718(5) 485,404 385,853 143,596(6) 529,449 Intensity of water consumption m3/per person N/A N/A N/A N/A N/A N/A N/A N/A N/A 171.91 142.17 162.76

Waste(3) Non-hazardous waste disposal Tonnes N/A N/A N/A N/A N/A N/A 4,334 404 4,738 6,521 1,858 8,379

Materials used(4) Cement Tonnes 17,494 186 17,680 10,831 290 11,121 11,496 739 12,235 8,394 11 8,405 Steel Tonnes 4,557 1 4,558 2,001 70 2,071 1,777 17 1,794 1,415 10 1,425 Steel strand Tonnes 86 0 86 65 0 65 105 0 105 2,383 0 2,383 Bitumen m3 9,122 0 9,122 9,943 562 10,505 4,972 1,225 6,197 17,716 895 18,611

(1) During the reporting year, 8 new cameras were installed. Estimated data based on the energy consumption of a total of 34 surveillance cameras powered by micro wind and solar power on the Western Delta Route.

(2) Calculation based on the purchased electricity figures and applied the default Mainland China Southern Grid emission factor of 867.6gCO2/kWh. (3) Data refer to the collection of waste caused by road users and natural environment along the GS Superhighway and the Western Delta Route. Data is affected by the change of traffic flow, weather conditions and the frequency of road cleaning, resulting in a higher year-on-year fluctuation. (4) The consumption of materials for repair and maintenance works on the GS Superhighway and the Western Delta Route were included. (5) Estimated data quoted last year was revised to actual data. (6) Data from April to June in 2017 at some toll stations were estimated based on monthly usage from July 2016 to March 2017.

SUSTAINABILITY REPORT 2016/17 35 Appendix: Data Tables

Energy Division

Indicator Operation Unit 2013/14 2014/15 2015/16 2016/17

Electricity sent out MWh 5,535,000 4,826,000 4,050,000 4,867,000 TJ 19,927 17,375 14,578 17,521 Own electricity consumption MWh 350,000 327,000 282,000 302,000 TJ 1,260 1,176 1,016 1,088 Coal consumed TJ 50,243 44,201 36,859 44,704 Oil consumed TJ 7.2 6.7 5.6 6.1 Thermal efficiency % 42.2 42 42.3 41.6 Availability factor % 86 80 66 73

Air emissions (1) Direct CO2e emissions kT 4,411 3,880 3,236 3,924 (2) Indirect CO2e emissions kT 0.5 0.5 0.4 0.5

Power plant emission factor (Intensity) tCO2/GWh 792.4 799.5 795.0 802.0 (3) SO2 kT 1.4 0.8 0.5 0.4 NOx(3) kT 2.3 1.2 0.9 0.6 Dust particles(3) kT 0.4 0.3 0.3 0.1

Waste produced Pulverized Fuel Ash (PFA) kT 257 228 208 230 Gypsum kT 53 51 46 58 Slag kT 21 18 17 18 Crystalline Salt kT 0.7 0.7 0.3 0.6 Pebble Coal kT 6.0 3.3 0.6 0.7 Mud/Sludge kT 5.8 5.0 4.5 5.2

Waste recycled/reused Pulverized Fuel Ash (PFA) kT 257 228 208 230 Gypsum kT 53 51 46 58 Slag kT 21 18 17 18 Crystalline Salt kT 0.7 0.7 0.3 0.6 Pebble Coal kT 6.0 3.3 0.6 0.7 Mud/Sludge kT 5.8 5.0 4.5 5.2 Non-hazardous waste produced kT 343.5 306 276.4 312.5 Non-hazardous waste recycled/reused kT 343.5 306 276.4 312.5

Hazardous Waste produced kT N/A N/A N/A N/A Hazardous Waste recycled/reused kT N/A N/A N/A N/A

Water Fresh water used m3 11,117 9,954 8,335 9,253 Reused/Recycled Water % 100 100 100 100 Wastewater discharged % 0 0 0 0

(1) Calculations based on the 2006 IPCC Guidelines for National Greenhouse Inventories. Emission source included is the coal consumed. Emission

factors used are CO2: 87.3tCO2/TJ, CH4: 0.001tCO2/TJ, N2O: 0.0015tCO2/TJ. Global Warming Potential values used are CO2: 1, CH4: 21, N2O: 310. (2) Includes emissions related to transportation in the plant area.

(3) SO2, NOx and dust particles data derived from plant emissions monitoring system. (4) Data is shown to integer or 1 decimal place.

36 HOPEWELL HOLDINGS LIMITED Appendix: Data Tables

SOCIAL PERFORMANCE TABLE

The Group (1) West Route JV (2) GS Superhighway JV (3) Heyuan Power Plant JV (4) Indicator Unit 2013/14 2014/15 2015/16 2016/17 2013/14 2014/15 2015/16 2016/17 2013/14 2014/15 2015/16 2016/17 2013/14 2014/15 2015/16 2016/17

Total Full-time Workforce(5) no. by Location Hong Kong 1,186 1,140 1,145 1,114 2 1 1 1 3 3 3 3 0 0 0 0 Mainland China 225 241 236 219 949 925 981 1,009 2,581 2,485 2,339 2,240 268 268 272 287 Total HK and China Employees(6) 1,411 1,381 1,381 1,333 951 926(7) 982(7) 1,010(7) 2,584 2,488(8) 2,342 2243 268 268 272 287

by Gender % Female 41.18 40.91 40.11 39.91 39.12 40.93 41.24 42.08 39.09 38.22 38.04 37.54 10.45 10.45 9.56 10.10 Male 58.82 59.09 59.88 60.09 60.88 59.07 58.76 57.92 60.91 61.78 61.96 62.46 89.55 89.55 90.44 89.90

by Age Group % Under 30 years old 20.77 19.48 19.33 18.38 72.34 70.19 70.88 67.43 52.09 48.43 48.93 50.69 39.18 39.55 30.15 34.84 30–50 years old 58.54 57.86 56.92 56.04 25.66 27.97 27.70 30.59 45.47 48.27 47.57 45.61 55.97 55.97 65.07 61.67 Over 50 years old 20.69 22.66 23.75 26.33 2.00 1.84 1.43 1.98 2.44 3.30 3.50 3.70 4.85 4.48 4.78 3.49

by Employment Category % Senior Management 0.99 0.86 1.01 1.73 0.84 0.65 0.61 0.59 0.35 0.36 0.38 0.41 3.36 2.99 2.94 2.09 Managerial 13.96 14.53 14.63 14.25 1.89 1.62 1.32 1.19 1.32 1.33 1.32 1.11 11.57 11.94 12.87 13.24 General 85.05 84.58 84.36 84.02 97.27 97.73 98.07 98.22 98.34 98.31 98.29 98.48 85.07 85.07 84.19 84.67

Minority groups within % workforce 0.71 0.58 0.65 0.89 2.1 1.94 2.04 1.98 1.86 2.49 2.39 2.27 2.99 2.61 2.57 3.83

Governance Bodies (9)(10)(11)(12) no. by Gender Female 1 0 0 2 0 0 0 0 1 1 0 0 1 1 1 1 Male 13 12 11 12 8 8 8 8 9 9 10 10 6 6 6 6

by Age Group no. Under 30 years 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 30–50 years old 2 2 2 4 6 6 5 3 5 6 5 1 5 3 3 3 Over 50 years old 12 10 9 10 2 2 3 5 5 4 5 9 2 4 4 4

Employee turnover rate (13) no. 461 282 367 414 180 173 160 185 341 364 539 479 12 22 12 16 (%) (32.67) (20.42) (26.57) (31.06) (18.93) (18.68) (16.29) (18.32) (13.20) (14.63) (23.01) (21.36) (4.48) (8.21) (4.41) (5.57)

by Gender no. Female (%) 156 106 127 201 71 71 59 77 163 165 201 162 3 1 2 1 (11.06) (7.68) (9.20) (15.08) (7.47) (7.67) (6.01) (7.62) (6.31) (6.63) (8.58) (7.22) (1.12) (0.37) (0.74) (0.35) Male 305 176 240 213 109 102 101 108 178 199 338 317 9 21 10 15 (21.62) (12.74) (17.38) (15.98) (11.46) (11.02) (10.29) (10.69) (6.89) (8.00) (14.43) (14.13) (3.36) (7.84) (3.68) (5.23)

by Age Group no. Under 30 years (%) 193 129 111 149 158 156 119 148 273 295 359 300 5 1 2 6 (13.68) (9.34) (8.04) (11.18) (16.61) (16.85) (12.12) (14.65) (10.57) (11.86) (15.33) (13.38) (1.87) (0.37) (0.74) (2.09) 30–50 years old 206 122 191 186 22 14 37 37 60 59 169 161 7 18 10 8 (14.60) (8.83) (13.83) (13.95) (2.31) (1.51) (3.77) (3.66) (2.32) (2.37) (7.22) (7.18) (2.61) (6.72) (3.68) (2.79) Over 50 years old 62 31 65 73 0 3 4 0 8 10 11 18 0 3 0 2 (4.39) (2.24) (4.71) (5.48) (0) (0.32) (0.41) (0) (0.31) (0.40) (0.47) (0.80) (0) (1.12) (0) (0.7)

New Employee no. No. of new employee % 551 422 361 366 171 196 173 173 344 269 395 399 15 19 17 31 Rates of new employee hire (14) 39.05 30.56 26.14 27.46 17.98 21.17 17.62 17.13 13.31 10.81 16.87 17.79 5.6 7.09 6.25 10.8

by Gender no. Female (%) N/A N/A 135 140 N/A N/A 63 71 N/A N/A 141 121 N/A N/A 1 1 (9.78) (10.50) (6.42) (7.03) (6.02) (5.40) (0.37) (0.35) Male N/A N/A 226 226 N/A N/A 110 102 N/A N/A 254 278 N/A N/A 16 30 (16.36) (16.95) (11.2) (10.10) (10.85) (1.24) (5.88) (10.45)

by Age Group no. (%) 157 161 150 159 383 386 16 30 Under 30 years N/A N/A (11.37) (12.08) N/A N/A (15.27) (15.74) N/A N/A (16.35) (17.21) N/A N/A (5.88) (10.45) 152 143 23 14 12 13 1 1 30–50 years old N/A N/A (11.01) (10.73) N/A N/A (2.34) (1.39) N/A N/A (0.51) (0.58) N/A N/A (0.37) (0.35) 52 53 0 0 0 0 0 0 Over 50 years old N/A N/A (3.77) (3.98) N/A N/A (0) (0) N/A N/A (0) (0) N/A N/A (0) (0)

SUSTAINABILITY REPORT 2016/17 37 Appendix: Data Tables

The Group (1) West Route JV (2) GS Superhighway JV (3) Heyuan Power Plant JV (4) Indicator Unit 2013/14 2014/15 2015/16 2016/17 2013/14 2014/15 2015/16 2016/17 2013/14 2014/15 2015/16 2016/17 2013/14 2014/15 2015/16 2016/17

Employees covered under % collective bargaining agreement _ _ 100 100 100 100 100 100 100 100 100 100 100 100

Minimum notice period(s) no. regarding significant operational changes, including whether it is specified in collective agreements. 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month 1 month

Occupational Injuries no. by Region Hong Kong 24 39 37 37 0 0 0 0 0 0 0 0 0 0 0 0 Mainland China 0 0 0 0 1 2 3 2 8 7 7 5 0 0 0 0

by Gender no. Female 10 10 13 15 1 1 0 0 2 1 2 1 0 0 0 0 Male 14 29 24 22 0 1 3 2 6 6 5 4 0 0 0 0

Lost Days due to Injuries Days 329.5 533.5 1,083 786 18 178 440 142 N/A N/A 412 230 0 0 0 0

Work-Related Fatalities 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

Rate of injury per 1,000 employees (15) 17.01 28.2 26.79 27.76 1.05 2.16 3.05 2.22 3.1 2.81 2.99 2.23 0 0 0 0

Employees receiving regular % performance reviews 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Notes: (1) The Group includes HHI management employees, which HHL, the parent company, holds a 66.69% stake in as at 30 June 2017, and other subsidiaries under the control of the parent company. (2) The Group has 33.35% stake in West Route JV through HHI. (3) The Group has 32.01% stake in GS Superhighway JV through HHI. (4) The Group accounted for 35% stake of the Heyuan Power Plant through a joint venture with Shenzhen Energy Group Company Limited. (5) The Group has only 34 part-time employees, 31 in Hong Kong and 3 in Mainland China, and all these part time employees are not included in the above Table. (6) No part-time employees have been hired by the three joint venture companies in Mainland China. (7) One HHI employee also counted as employees of West Route TV. (8) Three HHI employees also counted as employees of GS Superhighway JV. (9) The Group Board’s of Directors is the highest governance body. Separate Boards of Directors govern the joint venture companies in Mainland China. (10) Two HHL directors were on the board of GZW JV, including the Managing Director of HHL and HHI. (11) Three HHL directors were on the board of GS JV, including the Managing Director and Chairman of HHL and HHI. (12) Three HHL directors and management were on the board of Heyuan Power Plant JV. (13) Employee turnover rate was calculated as: Total no. of employees who leave the organisation voluntarily or due to dismissal, retirement, or death in service divided by total workforce during the reporting year. (14) Rates of New Employee Hire was calculated as: Total new employees divided by Total workforce. (15) Rate of occupational injury was calculated according to the definition adopted by the Labour Department of Hong Kong government, i.e., Total number of occupational injuries per year/Total employment size X 1,000 employees=number of injuries per 1,000 employee during the reporting year.

38 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

GRI G4 INDEX

GENERAL STANDARD DISCLOSURES

GRI G4 Detail Section Remarks indicator

STRATEGY AND ANALYSIS

G4-1 Chairman’s message Managing Director’s Message

G4-2 Key impacts, risk and Managing Director’s Message opportunities Stakeholder Engagement

ORGANISATIONAL PROFILE

G4-3 Name of organisation About this Report

G4-4 Primary brands, products and About Our Business — About services HHL

G4-5 Location of headquarters About Our Business — About HHL

G4-6 Countries of operation About Our Business — About HHL

G4-7 Nature of ownership About Our Business — About HHL

G4-8 Markets served About Our Business — About HHL

G4-9 Scale of the organisation About Our Business — About HHL

Social performance tables

Economic Performance Tables

G4-10 Employee statistics Social Performance Table

G4-11 Percentage of employees Social Performance Table covered by collective bargaining agreements

G4-12 Supply chain description About Our Business — Our Value Chain

Appendix: Supplementary Info — Supply Chain Description

SUSTAINABILITY REPORT 2016/17 39 Appendix: Index Tables

G4-13 Significant changes to No significant changes during organisation size, structure, the reporting period ownership or supply chain

G4-14 Report how precautionary Our CSR Approach approach is addressed Protecting Our Environment

G4-15 Charters Appendix: Supplementary info — Charters/Initiatives and Memberships

G4-16 Memberships Appendix: Supplementary info — Charters/Initiatives and Memberships

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 Entities included in financial Refer to Annual Report 2016/17 statements; mention those not covered by this report

G4-18 Process for defining report Appendix: Supplementary info content and aspect boundaries — Process to Defining Material Issues

G4-19 List of material Aspects Appendix: Supplementary info — List of Material Aspects

G4-20 Aspect Boundary within the Appendix: Supplementary info organisation — Aspect Boundary within Organisation

G4-21 Aspect Boundary outside the Appendix: Supplementary info organisation — Aspect Boundary Outside of Organisation

G4-22 Effect of and reasons for any No restatement restatements of information provided in previous reports

40 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

G4-23 Significant changes in scope/ Changes were made to the list Aspect Boundary of materials presented in Appendix — Supplementary Information — List of Material Aspects; Aspect Boundaries Outside of Organisation. “Respect for Property Rights” was removed from the list and from this year’s report as it is not considered as material during this reporting year. The word “consumer” has been revised to “customer” so that it is in line with GRI G4. “Protection of the environment, biodiversity and restoration of natural habitats” has been revised to “Biodiversity” as the Group did not participate in activities resulting in habitat loss or damage and thus restoration is irrelevant.

STAKEHOLDER ENGAGEMENT

G4-24 List of stakeholders engaged Our CSR Approach — Stakeholder Engagement

Supplementary Information — Stakeholder Engagement

Customer Satisfaction

G4-25 Basis of identification and Our CSR Approach — selection of stakeholders Stakeholder Engagement

G4-26 Stakeholder engagement Our CSR Approach — approach and frequency Stakeholder Engagement

Appendix: Supplementary Information — Stakeholder Engagement

SUSTAINABILITY REPORT 2016/17 41 Appendix: Index Tables

G4-27 Key topics and concerns raised Our CSR Approach — by stakeholders and the Stakeholder Engagement organisation’s response

REPORT PROFILE

G4-28 Reporting period About this Report — Scope of the report

G4-29 Date of last report Sustainability Report 2015/16 published in September 2016

G4-30 Reporting cycle About this Report

G4-31 Contact point Contact Us

G4-32 GRI “in accordance” option About this Report — Scope of chosen the report

G4-33 External assurance About this Report — Scope of the report

GOVERNANCE

G4-34 Governance structure Our CSR Approach — CSR Governance structure

ETHICS AND INTEGRITY

G4-56 Describe the organisation’s Appendix: Supplementary values, principles, standards and Information — Anti-corruption norms of behaviour

42 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

* DMA = Disclosure of Management Approach SPECIFIC STANDARD DISCLOSURES

GRI G4 Detail Section Remarks indicator

Disclosure for electric utility sector (applies to power plant only)

G4-EU1 Installed capacity, broken down About our business — About by primary energy source and Hopewell Holdings by regulatory regime

G4-EU2 Net energy output broken down About our business — About by primary energy source and Hopewell Holdings by regulatory regime

G4-EU3 Number of residential, industrial, We have only one institutional institutional and commercial customer account — customer accounts Guangdong Power Grid Co. Ltd.

ECONOMIC

DMA* About this Report — How We Report

About our business — About Hopewell Holdings

G4-EC1 Economic value generated and About Our Business — About The total revenue generated distributed Hopewell Holdings under our property development during the Economic Performance Table reporting year is HK$1,605 million, the earnings before interest and tax is HK$434 million. Please refer to our Annual Report 2016/17

G4-EC3 Coverage of the organisation’s During the reporting year, the defined benefit plan obligation Group made contribution to Hong Kong’s Mandatory Provident Fund (MPF) Schemes amounted to HK$13,694,000. For more details of MPF and other benefit plan such as share Option Scheme, please refer to our Annual Report 2016/17

SUSTAINABILITY REPORT 2016/17 43 Appendix: Index Tables

ENVIRONMENTAL

Materials

DMA Protecting Our Environment

Supplementary Information — Use of Resources

G4-EN1 Materials used by weight or Environmental Performance 0 Polychlorinated Biphenyl volume Tables (PCB) was used

Energy consumption

DMA Protecting Our Environment

Appendix: Supplementary Information — Emissions

G4-EN15 Direct greenhouse gas (GHG) Protecting Our Environment emissions (Scope 1) — Emissions

Environmental Performance Tables

G4-EN16 Energy indirect greenhouse gas Protecting Our Environment (GHG) emissions (Scope 2) — Emissions

Environmental Performance Tables

G4-EN17 Other indirect greenhouse gas Environmental Performance (GHG) emissions (Scope 3) Tables

G4-EN18 Greenhouse gas (GHG) Environmental Performance emissions intensity Tables

G4-EN19 Reduction of greenhouse gas Environmental Performance (GHG) emissions Tables

G4-CRE3 Greenhouse gas emissions Hopewell Panda QRE intensity from buildings Centre KITEC Hotel Plaza GARDENEast

CO2e emissions (Tonnes): 13,259 13,228 6,071 357 1,467 Intensity (Tonnes/sq.m): 0.17 0.08 0.098 0.05 0.164

G4-EN21 NOx, SOx, and other significant Environmental Performance air emissions Tables

44 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

Effluents and waste

DMA Protecting Our Environment — Noise and Water Pollution

Appendix: Supplementary Information — Production and Management of Hazardous and Non-hazardous Waste

G4-EN23 Total weight of waste by type Protecting Our Environment and disposal method — Waste Management

Environmental Performance Tables

Appendix: Supplementary Information — Production and Management of Hazardous and Non-hazardous Waste

Environmental compliance

DMA Protecting Our Environment

Appendix: Supplementary Information — Emissions

G4-EN29 Monetary value of significant Environmental Performance fines and total number of Tables nonmonetary sanctions for non-compliance with environmental laws and regulations

SOCIAL

Employment

DMA Caring for Our People

Appendix: Supplementary Information — Employment

G4-LA1 Total number and rates of new Social Performance Table employee hires and employee turnover by age group, gender and region

SUSTAINABILITY REPORT 2016/17 45 Appendix: Index Tables

Occupational health & safety

DMA Caring for Our People — Health & Safety

Appendix: Supplementary Information — Health and Safety

G4-LA6 Types of injury and rates of Social Performance Table injury, lost days and absenteeism, and total number of work related fatalities by region and gender

Training & career development

DMA Caring for Our People — Building the Capacity of Our Team

Appendix: Supplementary Information — Training and Development

G4-LA10 Programmes for skills Caring for Our People management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Local communities

DMA Giving Back to the Community

Supplementary Information — Community Engagement

G4-SO2 Operations with significant Protecting Our Environment actual and potential negative impacts on local communities

Anti-corruption

DMA Appendix: Supplementary Information — Anti-corruption

G4-SO5 Confirmed incidents of No incident of corruption was corruption and actions taken identified

46 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

Anti-competitive behavior

DMA Appendix: Supplementary Information — Whistleblowing Policy

G4-SO7 Total number of legal actions for There were no incidents of anti-competitive behavior, anti-competitive behavior and anti-trust, and monopoly violations of anti-trust and practices and their outcomes monopoly practices reported

Compliance

DMA Giving Back to the Community

G4-SO8 Monetary value of significant There were no significant fines fines and total number of non- on non-monetary sanctions for monetary sanctions for non- non-compliance with laws and compliance with laws and regulations regulations

Customer privacy

DMA Appendix: Supplementary Information — Customer Data Protection and Private Policies

G4-PR8 Total number of substantiated No incident of non-compliance complaints regarding breaches identified in relation to of customer privacy and losses marketing communication of customer data practice

Compliance of products & services

DMA Appendix: Supplementary Information — Product Responsibility

G4-PR9 Monetary value of significant No significant fines received fines for non-compliance with concerning the provision and laws and regulations concerning use of products and services the provision and use of products and services

SUSTAINABILITY REPORT 2016/17 47 Appendix: Index Tables

HKEx ESG REPORTING GUIDE INDEX

Details Section Found Explanation

A1 — Emissions

General Disclosure Appendix: Supplementary Information — Information on: Emissions (A1) (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer

The types of emissions and respective 1.1 Environmental Performance Tables emissions data

Greenhouse gas emissions in total (in tonnes) 1.2 Environmental Performance Tables and, where appropriate, intensity (e.g. per unit of production volume, per facility)

Total hazardous waste produced (in tonnes) 1.3 Appendix: Supplementary Information and, where appropriate, intensity (e.g. per unit — Production and Management of of production volume, per facility). Hazardous and Non-hazardous Waste

Total non-hazardous waste produced (in 1.4 Environmental Performance Tables tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility).

Description of measures to mitigate emissions 1.5 Protecting Our Environment and results achieved.

Description of how hazardous and non- 1.6 Appendix: Supplementary Information hazardous wastes are handled, reduction — Production and Management of initiatives and results achieved. Hazardous and Non-hazardous Waste

48 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

A2 — Use of Resources

General Disclosure Appendix: Supplementary Information — Use Policies on the efficient use of resources, of Resources (A2) including energy, water and other raw materials

Direct and/or indirect energy consumption by 2.1 Environmental Performance Tables type (e.g. electricity, gas or oil) in total (kWh in ’000s) and intensity (e.g. per unit of production volume, per facility).

Water consumption in total and intensity (e.g. 2.2 Environmental Performance Tables per unit of production volume, per facility).

Description of energy use efficiency initiatives 2.3 Protecting Our Environment and results achieved.

Description of whether there is any issue in 2.4 Protecting Our Environment sourcing water that is fit for purpose, water efficiency initiatives and results achieved.

Total packaging material used for finished 2.5 – Packaging products (in tonnes) and, if applicable, with materials for reference to per unit produced. finished products are minimal and not material due to the business nature of the Group.

A3 — The Environment and Natural Resources

General Disclosure Appendix: Supplementary Information — The Policies on minimising the issuer’s significant Environment and Natural Resources (A3) impact on the environment and natural resources.

Description of the significant impacts of 3.1 – There was no loss activities on the environment and natural or damage to the resources and the actions taken to manage natural them. environment resulting from the Group’s operations during the reporting year.

SUSTAINABILITY REPORT 2016/17 49 Appendix: Index Tables

B1 — Employment

General Disclosure Appendix: Supplementary Information — Information on: Employment (B1) (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer

Total workforce by gender, employment type, 1.1 Social Performance Table age group and geographical region.

Employee turnover rate by gender, age group 1.2 Social Performance Table and geographical region.

B2 — Health and Safety

General Disclosure Appendix: Supplementary Information — Information on: Health and Safety (B2) (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer

Number and rate of work-related fatalities. 2.1 Social Performance Table

Lost days due to work injury. 2.2 Social Performance Table

Description of occupational health and safety 2.3 Caring for Our People — Health & Safety measures adopted, how they are implemented and monitored.

B3 — Development and Training

General Disclosure Caring for Our People; Appendix: Policies on improving employees’ knowledge Supplementary Information — Development and skills for discharging duties at work. and Training (B3) Description of training activities.

The percentage of employees trained by 3.1 Caring for Our People — Building gender and employee category (e.g. senior Capacity of Our Team management, middle management).

The average training hours completed per 3.2 Caring for Our People — Building employee by gender and employee category Capacity of Our Team

50 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

B4 — Labour Standards

General Disclosure Appendix: Supplementary Information — Information on: Labour Standards (B4) (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer

Description of measures to review 4.1 – employment practices to avoid child and forced labour.

Description of steps taken to eliminate such 4.2 – During the year practices when discovered. under review, no operation is identified as having significant risk of child labour and forced labour.

B5 — Supply Chain Management

General Disclosure Appendix: Supplementary Information — Policies on managing environmental and Labour Standards (B4) social risks of the supply chain.

Number of suppliers by geographical region. 5.1 Appendix: Supplementary Information — Supply Chain Description

Description of practices relating to engaging 5.2 Appendix: Supplementary Information suppliers, number of suppliers where the — Supply Chain Description practices are being implemented, how they are implemented and monitored.

SUSTAINABILITY REPORT 2016/17 51 Appendix: Index Tables

B6 — Product Responsibility

General Disclosure Appendix: Supplementary Information — Information on: Product Responsibility (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer

Percentage of total products sold or shipped 6.1 – This KPI is not subject to recalls for safety and health reasons. relevant to our businesses.

Number of products and service related 6.2 Appendix: Supplementary Information complaints received and how they are dealt — Product Responsibility with.

Description of practices relating to observing 6.3 – This KPI is not and protecting intellectual property rights. relevant to our businesses.

Description of quality assurance process and 6.4 – This KPI is not recall procedures. relevant to our businesses.

Description of consumer data protection and 6.5 Appendix: Supplementary Information privacy policies, how they are implemented — Customer Data Protection and Private and monitored Policies

B7 — Anti-corruption

General Disclosure Appendix: Supplementary Information — Information on: Anti-corruption (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer

Number of concluded legal cases regarding 7.1 – No cases corrupt practices brought against the issuer or reporting during its employees during the reporting period and the reporting the outcomes of the cases. period

Description of preventive measures and 7.2 Appendix: Supplementary Information whistle-blowing procedures, how they are — Whistleblowing Policy implemented and monitored

52 HOPEWELL HOLDINGS LIMITED Appendix: Index Tables

B8 — Community Investment

General Disclosure Giving Back to the Community; Appendix: Policies on community engagement to Supplementary Information — Community understand the needs of the communities Engagement where the issuer operates and to ensure its activities take into consideration the communities’ interests.

Focus areas of contribution (e.g. education, 8.1 Giving Back to the Community; environmental concerns, labour needs, health, Appendix: Supplementary Information culture, sport) — Community Engagement Giving Back to the Community;

Resources contributed (e.g. money or time) to 8.2 Appendix: Supplementary Information the focus area. — Community Engagement

SUSTAINABILITY REPORT 2016/17 53 Appendix: Supplementary Information

GENERAL STANDARD DISCLOSURES

SUPPLY CHAIN DESCRIPTION (G4-12, HKEx B5.1, B5.2) All our supplier selection and purchasing decisions made across all business divisions are based on environmental, professional and ethical standards. Although cost is a primary consideration in selecting suppliers and contractors, we give equal consideration to their sustainability performance. This includes their efforts in ensuring high standards in service, product quality and responsibility, the incorporation of sound environmental practices and the integration of stringent occupational health and safety and labour practices throughout their business.

To engage our suppliers in our property and hospitality business divisions and to communicate our expectations to them, information relating to environmental performance, occupational health and safety and labour practices are outlined in our contractor and supplier contract documents. We also conduct capacity building in the form of supplier briefings. Currently, we have 580 suppliers all based in Hong Kong. Our contractors and suppliers must comply with all relevant environmental laws and regulations and are required to acknowledge and follow our Environmental and CSR Policy for Contractors/Suppliers and the Environmental Guidelines. To set out the requirements and procedures for selecting contractors, we have put in place our Contractor Assessment Procedure.

For our JV operations in China, Directors and Senior Executives of HHL participate actively in management decisions. Through this we are able to communicate our stance on environmental and social issues. Hong Kong staff members have been placed on secondment to work closely with our JV partners on implementing and monitoring projects, influencing supply chain decisions at the operational level.

A new supply chain management system for our property division is currently undergoing a User Acceptance Test (“UAT”) and will be launched in the near future to improve procurement efficiency, ensure equity and integrity, improve management control and budget control, facilitate retrieval of past purchase records, and to be more environmentally friendly.

54 HOPEWELL HOLDINGS LIMITED Appendix: Supplementary Information

CHARTERS/INITIATIVES AND MEMBERSHIPS (G4-15, G4-16) HHL has committed to a number of memberships and charters. Memberships and charters include:

• Waste Check Charter • Charter on External Lighting • Energy Saving Charter • Carbon Reduction Charter • Workplace Hygiene Charter • Hong Kong Green Building Council • Hong Kong Corporate Governance Charter • The Real Estate Developers Association of Hong Kong • Hong Kong General Chamber of Commerce • The Hong Kong Management Association • The Canadian Chamber of Commerce in Hong Kong • The Chamber of Hong Kong Listed Companies • The Green Earth • WWF-Hong Kong • Hong Kong Theatres Association Limited • Hong Kong Motion Picture Industry Association

PROCESS TO DEFINING MATERIAL ISSUES (G4-18) During the preparation of the 2011/12 Sustainability Report, we conducted a stakeholder engagement exercise to determine the Group’s material issues. The process was guided by the core areas from ISO 26000 Guidance on Social Responsibility: corporate governance, workplace practices, human rights, environmental considerations, fair operating practices, customer issues and community involvement. Participants were asked to rate 37 issues on a scale of 1-4 (least to most important). The following matrix displays the 20 most important issues to our stakeholders and the Group.

Relative Materiality Matrix High

9 1 2 8 6 3

7 4 5 13 14 11 17 10

19 12 Relevance for Management 18 15 16

20 Low Low High Relevance for Stakeholders

SUSTAINABILITY REPORT 2016/17 55 Appendix: Supplementary Information

LIST OF MATERIAL ASPECTS (G4-19)

Core-areas Issues

Labour practices 1. Conditions of work and social protection

2. Health and safety at work

Fair operating practices 3. Anti-corruption

Labour practices 4. Employment and employment relationships

The environment 5. Prevention of pollution

6. Sustainable resource use

Customer issues 7. Protecting customers’ health and safety

Organisational governance 8. Organisational governance

Human rights 9. Fundamental principles and rights at work

Fair operating practices 11. Customer data protection and privacy

The environment 12. Biodiversity

Human rights 13. Economic, social and cultural rights

Customer issues 14. Customer service, support and complaint and dispute resolution

Community involvement and development 15. Community involvement

16. Social investment

Human rights 17. Discrimination and vulnerable groups

Community involvement and development 18. Employment creation and skills development

The environment 19. Climate change mitigation and adaptation

Fair operating practices 20. Promoting social responsibility in the value chain

Note: Issue 10 (Respect for Property Rights) was removed from the list and from this year’s report as it is not considered as material during this reporting year.

56 HOPEWELL HOLDINGS LIMITED Appendix: Supplementary Information

ASPECT BOUNDARIES WITHIN ORGANISATION (G4-20)

Property Investment & Sustainability Features and Initiatives Development Hospitality Highway Energy

Governance and Engagement

Sound corporate governance practices 3 3 3 3

Risk management 3 3 3 3

Stakeholder engagement 3 3 3 3

Integrating social and environmental responsibility into value chain 3 3 3 3

Environmental Initiatives

Sustainable design 3 3 3

Enhancing energy efficiency 3 3 3 3

Managing carbon footprint 3 3 3 3

Waste reduction and recycling 3 3 3 3

Greenery management 3 3 3 3

Promoting electric vehicles 3 3

Social Initiatives

Equal employment practices 3 3 3 3

Workplace health and safety 3 3 3 3

Ensuring safe and healthy environment for communities 3 3 3 3

Promoting food safety and sustainable consumption 3

Providing barrier-free access and facilities 3 3

Enhancing convenience for communities to facilitate economic and social development 3 3 3

Improving traffic efficiency 3 3

SUSTAINABILITY REPORT 2016/17 57 Appendix: Supplementary Information

ASPECT BOUNDARIES OUTSIDE OF ORGANISATION (HONG KONG AND CHINA) (G4-21)

Concerned External Discussed in Within Outside Stakeholder The Following Core-areas Issues the Group the Group Group Sections

Organisational 1. Organisational 3 3 Shareholders About Hopewell governance governance Holdings

2. Conditions of work 3 – Caring for Our and social People protection

3. Health and safety at 3 – Caring for Our work People; Labour practices Supplementary Information

4. Employment and 3 – Caring for Our employment People; relationships Supplementary Information

5. Anti-corruption 3 3 Shareholders Supplementary Customers Information Suppliers Fair operating Business partners practices 6. Promoting social 3 3 Suppliers Our Value Chain; responsibility in the Supplementary value chain Information

7. Prevention of 3 3 Community Protecting Our pollution Suppliers Environment Shareholders Customers

8. Sustainable resource 3 3 Community Protecting Our use Suppliers Environment; Customers Supplementary The environment Information

9. Biodiversity 3 3 Community Supplementary Suppliers Information Customers

10. Climate change 3 3 Shareholders Protecting Our mitigation and Community Environment adaptation Business partners

58 HOPEWELL HOLDINGS LIMITED Appendix: Supplementary Information

Concerned External Discussed in Within Outside Stakeholder The Following Core-areas Issues the Group the Group Group Sections

11. Protecting 3 Customers Meeting Customer customers’ health Community Needs and safety Shareholders

12. Customer data 3 3 Shareholders Supplementary protection and Customers Information Customer issues privacy Community Business partners

13. Customer service, 3 3 Shareholders Meeting Customer support, and Customers Needs; complaint and Supplementary dispute resolution Information

14. Fundamental 3 – Supplementary principles and Information rights at work

15. Economic, social 3 3 Shareholders Supplementary Human rights and cultural rights Community Information Customers

16. Discrimination and 3 3 Community Supplementary vulnerable groups Shareholders Information Customers

17. Community 3 3 Community Giving Back to the involvement Shareholders Community Customers

Community 18. Social investment 3 3 Community Giving Back to the involvement and Shareholders Community development Customers

19. Employment 3 – Caring for Our creation and skills People development

SUSTAINABILITY REPORT 2016/17 59 Appendix: Supplementary Information

STAKEHOLDER ENGAGEMENT (G4-26, 27) Continuous dialogue with our stakeholders enable us to make informed decisions and better assess the potential impacts of our business decisions. Engagement activities undertaken during the reporting year remain similar to previous years. Designated sectors of stakeholders will be engaged each year. The types of engagement activities are outlined below.

• Annual customer • Month-long campaign to raise service standards satisfaction survey and maintain customer • Organising public events satisfaction • Commuter satisfaction • Guest comment card and survey for highway users client feedback survey at our venues • Up-to-date traffic • Designated customer hotline condition mobile application and website • Corporate website for highway users • Social media (e.g. Facebook)

rs and t ome ena st nt • Training, seminars, briefing Cu s sessions • Annual General Meeting I s n • HH Social Club activities h v • Investor briefings e s a r s • 24-hour Employee e e t • Face-to-face meetings e o h

Assistance Programme y r

o

s

o • Conference calls l l

Hotline Stakeholder Group

d

a

p

n

e • Corporate website

d r

• Face-to-face meetings m & Engagement s E • Financial reports • Independent focus groups and interviews C s s • Recreational and o s m e r volunteering activities & n e m si n N un u t G it B ar O ies p s Suppliers • Employee volunteering • Face-to-face meetings activities • Individual interviews • Participation in • Briefing sessions and programmes initiated by seminars NGOs • Face-to-face meetings • Organising public events • Daily work review • Independent interviews • Supplier assessment • Independent interviews

EMISSIONS (HKEx A1) (GRI DMA) The Group is committed to actively managing the environmental impacts of our business activities. We strive to comply with all relevant environmental laws and regulations in our operations in both Hong Kong and China.

The emissions from our Heyuan Power Plant are closely monitored and remain in compliance with Chinese laws and legislation. Upgrades to our facilities have been undertaken to further reduce emissions levels and to meet all legal requirements.

More details can be found in the Protecting Our Environment section.

60 HOPEWELL HOLDINGS LIMITED Appendix: Supplementary Information

PRODUCTION AND MANAGEMENT OF HAZARDOUS AND NON-HAZARDOUS WASTE (HKEx A1.3, A1.6) Hazardous waste produced by our operations include electronic waste and chemical waste. The management measures of such waste material are provided below:

Electronic Waste GARDENEast donated over 137 pieces of electronic waste to ALBA IWS recycling programme, set up on behalf of EPD. Hopewell Centre, QRE Plaza, Wu Chung House and Broadwood Twelve received the Certificate of Appreciation from the Computer & Communication Products Recycling Programme of EPD. For staff awareness, we conducted our Electrical and Electronic Waste Recycling Seminar to encourage recycling.

Chemical Waste Hopewell Centre, KITEC, Panda Place, Broadwood Twelve, GARDENEast, Wu Chung House and Villa Lotto have registered with EPD as chemical waste producers under the Waste Disposal (Chemical Waste) (General) Regulation. We have implemented a number of controls to ensure that all hazardous chemical waste were transported and treated by licensed waste collectors. At Hopewell Centre, KITEC, Panda Place and Broadwood Twelve, 8.9 kg, 1,800 kg, 1,200 kg and 29 kg of chemical waste were collected and transported by licensed waste collector respectively. Most of them are fluorescent tubes/lamps.

Detailed management measures to handle chemical waste are outlined in our Environmental Guidelines of Hopewell Property and Facility Management Limited. No chemical spills occurred on our property during the reporting period.

In terms of non-hazardous waste, the following measures were implemented to manage and reduce the amount of waste generated.

Plastic A reusable bag collection box was placed at prominent location at Hopewell Centre for collecting carrier bags to be shared with others for reuse.

Glass Panda Hotel sorted and delivered used bottles to recycling companies for processing and continues to participate in the Glass Container Recycling Programme for the Hotel Sector supported by EPD and the Hong Kong Hotels Association.

From July 2016 to June 2017, 7,063 kg of used glass bottles have been collected which will be manufactured into ecobricks by recyclers.

Organic waste excluding food Panda Hotel participated in the Chinese New Year Peach Blossom Recycling waste Programme organised by the Hong Kong Environmental Protection Association. Withered plants were recycled and processed into organic fertilisers or compost which were then donated to local schools for planting use.

Effluent Hopewell Centre, QRE Plaza, Panda Place, Broadwood Twelve, Wu Chung House and Villa Lotto have obtained the “Waste Water Discharge Licence” from EPD to ensure that our effluent discharge meets regulatory standards prior to discharge.

SUSTAINABILITY REPORT 2016/17 61 Appendix: Supplementary Information

USE OF RESOURCES (HKEx A2) (GRI DMA) We advocate responsible use of resources to our employees and customers to minimise the amount of materials we use.

Through our Go Green Workplace campaign, a Green Captain is nominated for each department for executing our green office measures by encouraging and reminding staff to turn off lights and shut down computers, minimise unnecessary printing and recycle used materials. For our hotel guests at Panda Hotel, we issue reminder cards for hotel guests to remind them to minimise energy and water consumption.

To reduce our energy consumption, we will integrate BEAM Plus standards into the design and building processes at our new properties. This involves sustainably sourced construction resources to yield higher water and energy efficiencies.

Our Environmental Guidelines of Hopewell Property and Facility Management Limited provide the framework for wise use of resources for our employees and contractors.

We have implemented the zero-wastewater system at our Heyuan Power Plant where wastewater is treated and reused in order to achieve the target of zero discharge of wastewater. All waste generated (fuel ash, gypsum, slag, crystalline salt, pebble coal and mud/sludge) are transformed into useful building materials such as concrete, plasterboard, bricks, industrial-grade salt, fuel and eco-bricks at 100% recovery rate.

THE ENVIRONMENT AND NATURAL RESOURCES (HKEx A3) We are committed to minimising our impact to the environment and natural resources. Our hospitality business division continues to promote shark fin-free menus and we have introduced an Ocean-Friendly Menu which references the WWF-Hong Kong Seafood Guide. In addition, our Environmental Guidelines of Hopewell Property and Facility Management Limited outline requirements for employees and contractors to protect the natural environment. We minimise the footprint of our new development projects to urban areas as far as practicable to avoid unnecessary damage to the environment. Environmental protection measures of these projects follow the requirements of relevant government guidelines. There were no expansion works at Heyuan Power Plant and our highway operations in the PRC and thus there was no loss of natural habitats. Our zero-wastewater system at Heyuan Power Plant prevents pollutants from entering nearby waterbodies.

EMPLOYMENT (HKEx B1) (GRI DMA) All business divisions within our Group complies with all applicable laws and regulations related to employment practices. As an equal employer, we are committed to providing a harmonious, respectful and safe workplace. HHL offers equal opportunity employment by eliminating discrimination in our hiring practices. We do not discriminate based on gender, age, disability, marital status, pregnancy, family status, sexual orientation or race. Employment, promotion, salary review and redeployment are offered strictly based on individual performance. In addition to full compliance with all relevant local rules and regulations, the Group’s senior management works closely with our partners to ensure that all workers employed at our JV operations are treated fairly and in accordance with the same high standards applicable within the Group. Details of our commitment are outlined in our Hopewell Holdings Limited Employee Handbook and Hopewell Highway Infrastructure Limited Employee Handbook.

More details can be found in the Work-life Balance section.

62 HOPEWELL HOLDINGS LIMITED Appendix: Supplementary Information

HEALTH AND SAFETY (HKEx B2) (GRI DMA) We are committed to providing a safe working environment to our employees and to protect them from occupational hazards. We operate in compliance with all Hong Kong and Mainland China health and safety laws and regulations for all our business divisions. For our highway operations, we publish safety management regulation manuals to be distributed to our frontline staff.

For Heyuan Power Plant operations, we have a Health, Safety and Environment (“HSE”) Management System in place to effectively implement relevant national and local laws and regulations, as well as national and industry standards. This system outlines the framework of our management approach to create a safe working environment. This management system applies to all employees and suppliers.

For our Hong Kong operations, we have assigned Fire Safety Ambassadors to raise employee awareness on fire safety and conducted fire drill trainings at Hopewell Centre main office and Panda Hotel. A series of OHS training is offered to Panda Hotel staff covering Occupational Safety and Health Ordinance and Regulation, Factories and Industrial Undertakings Ordinance and Regulation, Guarding and Operation of Machinery Regulation, Fire Precautions in Notifiable Workplace Regulation, Electricity Regulation and Dangerous Substances Regulations. Safety briefings are conducted at orientation for new staff and monthly staff meetings. Display boards with OHS information are set up in staff-only premises.

We also support the Workplace Hygiene Charter advocated by the Occupational Safety and Health Council (“OSHC”). More details can be found in the Health & Safety section.

DEVELOPMENT AND TRAINING (HKEx B3) (GRI DMA) We offer professional, compliance and personal development training on a regular basis. Policies regarding employee training and development can be found in the Hopewell Holdings Limited Employee Handbook and Hopewell Highway Infrastructure Limited Employee Handbook. Heyuan Power Plant provides professional in-house and external training programme for new employees as well as existing employees. Our Heyuan Power Plant Employee Handbook provides details of the objectives and types of training available to employees. More details can be found in the Building the Capacity of Our Team section.

LABOUR STANDARDS (HKEx B4) It is important to HHL that our operations and supply chain are free from negative labour practice including forced and child labour. Our Internal Audit department conducts internal audits regularly across human resources functions of all business divisions, where sample checks are conducted. Secondly, employment standards are outlined within our Environmental and CSR Policy for Contractors/Suppliers. Meanwhile, when working with third-parties, fair labour is outlined within our Environmental and CSR Policy for Contractors/Suppliers and the Environmental Guidelines. There were no cases of child or forced labour reported. We abide by only hiring employees over the minimum legal working age of relevant labour laws and regulations.

SUSTAINABILITY REPORT 2016/17 63 Appendix: Supplementary Information

PRODUCT RESPONSIBILITY (HKEx B6) (GRI DMA) Quality service is imperative to the success of our business and we proactively seek feedback on our services through various customer satisfaction surveys and interviews. Customer grievance channels are available in each business sector:

Business Sector Platform to Report Grievance

Property Customer satisfaction surveys and interviews

Hospitality Panda Hotel website http://www.pandahotel.com.hk/en/others/contactus; guest comment card

Highway Customer hotline

Power Plant Direct line for electricity grid company

Our approach in handling customer complaints is outlined in our Code of Conduct. The Code is available at https://www. hopewellholdings.com/eng/pdf/corporate_governance/HHL_Policies_and_Procedures_Code_of_Conduct_Eng.pdf.

To ensure safe and secure environments for our residents at our properties, we conduct regular inspections on our lifts, escalators and fire service systems. For our highway operations, we have patrol and rescue teams set up on the GS Superhighway, as well as surveillance camera coverage on both highways. Within our hospitality sector, food safety is a priority. Monthly food testing is performed by an independent external party to ensure food hygiene and quality at Panda Hotel, Xi Shan and MENU.

Starting from 2012, the production of homemade products of less than 30,000 pieces requires an exemption of nutrition label from Food and Environmental Hygiene Department (“FEHD”). Under this exemption, product and manufacturer information is still required to be made available to customers. An exemption number is assigned upon registration, which is accessible to the public on FEHD’s website along with the product name and exemption number. Our hospitality division strictly complies with this regulation.

More details can be found in the Meeting Customer Needs section.

CUSTOMER DATA PROTECTION AND PRIVATE POLICIES (HKEx B6.5) (GRI DMA) The Group strictly complies with relevant government and industry regulations to protect the rights of our customers. For property sales, all marketing materials and sales arrangements fully comply with the Residential Properties (First-hand Sales) Ordinance. We have also strictly followed the Personal Data (Privacy) (Amendment) Ordinance since it came into effect in 2013. All personal data collected is handled confidentially and kept securely. Our Privacy Policy outlines our approach and commitment to protecting our customer’s information, the policy is available at: https://www.hopewellholdings.com/eng/hhl_privacy_policy.htm.

64 HOPEWELL HOLDINGS LIMITED Appendix: Supplementary Information

ANTI-CORRUPTION (HKEx B7) (GRI DMA, G4-56) Our Group-wide Code of Conduct (The Code is available at https://www.hopewellholdings.com/eng/pdf/corporate_ governance/HHL_Policies_and_Procedures_Code_of_Conduct_Eng.pdf) addresses anti-corruption issues and fair procurement processes. All employees are required to sign the Group-wide Code of Conduct upon employment and comply fully with it during their tenure to keep a high degree of integrity. The Code is our central guide and is written based on our core values; issues addressed include bribery, conflicts of interest, relations with suppliers and contractors, investors, customers and consumers. We operate in compliance with relevant laws and legislation that have a significant impact on our business.

WHISTLEBLOWING POLICY (HKEx B7.2) All employees are required to sign our Group-wide Code of Conduct. The code reflects our core values and provides guidance on such issues as bribery, conflicts of interest, relations with suppliers and contractors, investors, customers and consumers. Additionally, briefing sessions for employees are organised to explain how we govern the behaviour of the organisation.

A Whistleblowing Policy is in place to provide a confidential platform for employees to report issues observed from our operations. Briefing sessions on the policy were conducted for employees to better understand the reporting procedures. Our Whistleblowing Policy is available at: https://www.hopewellholdings.com/eng/pdf/corporate_ governance/HHL_Whistleblowing_Policy_Eng.pdf.

Training on integrity, bribery prevention, equal opportunities, customer data, personal data privacy and the Competition Ordinance are also provided to our employees.

COMMUNITY ENGAGEMENT (HKEx B8) We engage with local communities in both Hong Kong and PRC regularly by organising, participating and sponsoring events and activities to create opportunities for the Group to engage with stakeholders.

HHL partners with the following NGOs:

• Friends of the Earth (HK) • St. James’ Settlement • The Community Chest of Hong Kong • The Green Earth • The Hong Kong Outstanding Students’ Association • The Hong Kong Red Cross • World Green Organisation • WWF-Hong Kong • Wan Chai Sports Federation • Yan Chai Hospital • Evangel Children’s Home • Table for Two HK Limited

SUSTAINABILITY REPORT 2016/17 65 Appendix: Supplementary Information

COMMUNITY ENGAGEMENT STRATEGY CHART

To serve the community and To enhance awareness of improve the quality of life environmental protection of the people we serve among employees and Business Community the public Need Need • Tuen Ng Volunteer Visit 2017 • Wan Chai District Warmth • E-Max “Green Carnival” Action 2016-17 • Electrical and Electronic • Happy Family Poon Choi Feast Waste Recycling Seminar 2016-2017 • WWF-Hong Kong Earth Hour 2017 • Dress Casual Day 2016 • Hong Kong Tree Planting • 2016/2017 Hong Kong and Day 2017 Kowloon Walk for Millions • The Community Chest • Skip Lunch Day 2017 Green Day 2017 • Love Teeth Day 2016/2017 • Walk for The Green Earth Key NGO Partn 16 ers • St. James’ Settlement Valentine’s – Night Walk at Tai Mo Shan Rose Charity Sale 2017 • E-Max upcycling workshop • St. James’ Settlement Flag Day • Mooncake Transfer Programme tal en 12% m n • Heifer’s Race to Feed 2016 2016 n tio ro c C i te E o • Mooncakes for Charity 2016 • Wan Chai District Book v o n n r g m E P a m Exchange Programme g • TWGHs “iRun” – Hong Kong e u m n • WWF – Hong Kong i Jockey Club Special Marathon 2017 e t y “Night Safari – Action in 103 735 n

t • SPCA Charity Raffle 2017

a

the Starlight” at Mai Po S Programmes Volunteer n

p 7 • McDull Charity Run 2017

d

o Nature Reserve Participated Service Hours 1

r

C • Cake Baking Class with The Boys’ t %

s • Green-Christmas at E-Max u

, l t and Girls’ Clubs Association of A u r r t e s Hong Kong To contribute to the 7 HK$2.7M • The Community Chest Wheelock % Donation (for NGOs in Hong Kong, development of sports, including cash and Swim for Millions 2016 arts and culture in-kind donations) • The Community Chest Wine for Yo De uth Millions 2016/17 velo • World Music Day in Wanchai pment 10% • Movie Screening for the Visually • Chinese Orchestra Performance Impaired • Wanchai Wine Walk & Music Stroll 2016 • Zombie Walk 2016 To nurture our young people • QRE Music Box for the future • Sponsorship of 40th Hong Kong International Film Festival (HKIFF) • Hopewell Junior Volunteers • 2016 Sundance Film Festival HK Programme • Panasonic Interschool Basketball • Sponsorship of Hong Kong Competition 2017 Outstanding Students’ Business Economic Social Association – “Project Vista 2017” • Sponsorship of Lingnan Value Growth Cohesion University Fundraising Walkathon 2016 • Sponsorship of Soccer Team of Wanchai Sports Federation • Love Junior Campaign • Christmas and New Year Children’s Party • 2017 Final Year Project Screening, Academy of Film (Higher Diploma), Hong Kong Baptist University

66 HOPEWELL HOLDINGS LIMITED HH SOCIAL CLUB ACTIVITIES This year, our HH Social Club remains active in volunteering work in our community, especially in Wan Chai district. We continued to provide opportunities for our staff to engage in environment-related activities dealing with waste management and nature conservation. Other interest group activities were also held to encourage staff to explore their hobbies related to photography and sports.

Community Environment Interest Group

• Heifer’s Race to Feed 2016 • Mooncake Transfer Programme • Cake Baking Class • Wan Chai District Warmth 2016 • Ngong Ping 360 Photography Action 2016-17 • Wan Chai District Book Outing • Happy Family Poon Choi Feast Exchange Programme • McDull Charity Run 2017 2016-2017 • Electrical and Electronic Waste • Cyanotype Workshop • St. James’ Settlement Recycling Seminar • HH Social Club Basketball Valentine’s Rose Charity Sale • WWF – Hong Kong Earth Hour Practice 2017 2017 • Portrait Photography Workshop • Hopewell Junior Volunteers • Hong Kong Tree Planting Day • HH Social Club Runners Programme 2017 Training • Tuen Ng Volunteer Visit 2017 • Walk for The Green Earth • Aromatherapy Workshop • St. James’ Settlement Flag Day – Night Walk at Tai Mo Shan • 2016/2017 Hong Kong and • WWF – Hong Kong “Night Kowloon Walk for Millions Safari – Action in the Starlight” at Mai Po Nature Reserve

SUSTAINABILITY REPORT 2016/17 67 Appendix: Supplementary Information

VERIFICATION STATEMENT

Scope and Objective

Hong Kong Quality Assurance Agency (“HKQAA”) conducted an independent verification of the Sustainability Report 2016/17 (hereinafter referred to as “the Report”) of Hopewell Holdings Limited (hereinafter referred to as “Hopewell”). The Report states Hopewell’s commitments and progress on sustainability for the period of 1st July 2016 to 30th June 2017.

The aim of this verification was to provide a reasonable assurance on the completeness and accuracy of the information stated in the Report which was prepared in accordance with the Core Option of the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines and the Construction & Real Estate and Electric Utilities Sectors Disclosures as well as the Environmental, Social and Governance Reporting Guide (ESG Reporting Guide) of the Hong Kong Stock Exchange.

Assurance Methodology

The verification process included reviewing of relevant documentation, interviewing responsible personnel with accountability for preparing the reporting contents and verifying the selected representative sample of data and information. Raw data and supporting evidence of the selected samples were thoroughly examined.

Independence

HKQAA was not involved in collecting and calculating the reporting data, or in the development of the Report. HKQAA’s activities are independent from Hopewell.

Conclusion

The results of our verification provided confidence in the systems and processes used by Hopewell for managing and reporting sustainability performance information. It is confirmed that the contents stated in of the Report are accurate and reliable. The requirements, aspects and key performance indicators specified in the G4 Sustainability Reporting Guidelines and the ESG Reporting Guide have been adequately addressed. The information presented in the reporting contents articulate a balanced account of Hopewell’s sustainability performance during the reporting period.

Hopewell has established effective mechanism to proactively engage with its stakeholders. Feedbacks from stakeholders were taken into account very seriously for incorporating into the company’s sustainability strategies and for preparing the reporting contents. Also, Hopewell has been responsive to stakeholder concerns and expectations with a number of examples shown in the Report. Overall, the material sustainability issues of Hopewell’s commitments, progress and achievement were included in the Report.

Signed on behalf of Hong Kong Quality Assurance Agency

Jorine Tam Director, Strategic Business September 2017

68 HOPEWELL HOLDINGS LIMITED CONTACT US We welcome your feedback and suggestions for any improvements to this Sustainability Report and our sustainability programmes. For any comments and 2016/17 enquiries, please contact us via email at [email protected].

Hopewell Holdings Limited Sustainability 64th Floor, Hopewell Centre Report 183 Queen’s Road East Hong Kong

Tel : (852) 2528 4975 Fax : (852) 2861 2068

www.hopewellholdings.com

2016/17 SUSTAINABILITY REPORT